Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Bitcoin’s Correlation To Gold Is Rising: What It Means

Share This Post

Data shows the relationship between Bitcoin and Gold has been growing deeper recently as their 60-day correlation has been riding an uptrend.

Bitcoin Has Been Becoming Increasingly Correlated To Gold Recently

In a new post on X, Kaiko has discussed about the latest trend taking place in the correlation for Bitcoin and Gold. The “correlation” here refers to a metric that keeps track of how closely tied the prices of any two given assets are.

When the value of this indicator is positive, it means that one asset is responding to the price movements of the other by moving in the same direction as it. The closer the value gets to 1, the stronger is this correlation between the two prices.

Negative values of the metric also suggest that there exists some sort of relationship between the two assets, but in this case, the correlation is a negative one. This implies that the assets react to movements in each other by moving in the opposite directions.

Just like the 1 mark served as the extreme for the positive correlation, -1 corresponds to the point where negative correlation becomes the strongest. Naturally, when the metric is exactly between these two extremities, that is, the zero mark, it suggests that no correlation whatsoever exists between the assets.

In statistics, the two variables are called to be “independent” of each other when this condition develops. Independent variables are unaffected by changes in each other.

Now, here is a chart that shows the trend in the 60-day correlation between Bitcoin and Gold over the last few years:

Bitcoin Correlation To Gold

As displayed in the above graph, the 60-day Bitcoin correlation to Gold had plunged to the negative territory to end the year 2023 as the two had been showing slight movements in the opposite directions.

In the last few months, though, the indicator’s value has seen a rise and there now exists a positive relationship between the two assets. At present, this correlation is still relatively low, as the metric’s value is less than 0.2.

Back in 2022, the indicator had witnessed a high of nearly 0.5. Clearly, despite the recent trend of increase, the metric’s value is still quite the distance away from this mark.

Generally, the correlation is something to look out for whenever an investor is trying to decide whether to add an asset to their portfolio. Highly correlated assets make for poor diversification options, as they are only going to mimic the performance of another asset.

Given that Bitcoin and Gold still have the metric at relatively low levels, investors of one of the assets may find it beneficial to add the other to their portfolio.

BTC Price

At the time of writing, Bitcoin is trading around $68,700, up nearly 2% over the last 24 hours.

Bitcoin Price Chart

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Price Watch: Support Holds Near $95K Amid Volume Drop

Bitcoin was priced at $95,426 on May 4, 2025, with a market capitalization of $1895 trillion Over the past 24 hours, it recorded a trade volume of $13546 billion and fluctuated within a narrow

Kyrgyzstan Partners With Binance to Advance Digital Asset Sector and Enhance Financial Literacy

Binance has signed a Memorandum of Understanding (MoU) with the National Agency for Investments under the President of Kyrgyzstan to foster collaboration in advancing the digital-asset sector in the

Bitcoin At $100K? $3 Billion In Shorts Are On The Line

Bitcoin is red hot again Price reached $97,500 before dipping slightly lower to $97,000, and the markets are abuzz Sellers anticipating Bitcoin’s upswing might be in for trouble Figures reveal

Why DeFi agents need a private brain

The following is a guest post and opinion of Matej Janež, Head of Partnerships at Oasis At EthDenver earlier this year, one topic kept coming up again and again: AI and autonomous AI Agents That

Crypto Founder Warns: Skipping XRP Could Be The Real Risk

A new round of debate is gaining traction throughout the crypto universe, driven by the argument that not going into crypto at all could be the actual gamble investors are making Dom Kwok, EasyA

Trump Acknowledges Possible Recession, Highlights US Economy Is in Transition

While President Trump stated that anything could happen with the US economy given the current course of action, he clarified that he was not worried about a short-term recession “I think