Insights

Bitcoin and gold have highest correlation in over a year, as gold approaches its all time high

exchange68September 13, 2024

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Quick Take

Many narratives occur in the Bitcoin ecosystem, and one of them is Bitcoin is digital gold due to the fundamentals of supply and demand.
BTC and gold have had a significant correlation throughout 2022 and have mirrored each other, albeit BTC was a lot more volatile than gold, as shown in the trading view graph below.
However, the correlation did go away when the FTX collapse occurred, which fundamentally had nothing to do with Bitcoin other than FTX holding Bitcoin on its balance sheet.
As the dust settles from the FTX collapse, the correlation has shot up to a one-year high of 93% correlation, while gold is on the periphery of breaking out to an all-time high approaching $2k an ounce.

BTC, Gold Correlation: (Source: Trading View)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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