EddieJayonCrypto
17 Jan 24
:The correlation between Bitcoin and gold prices has strengthened in recent months, with the correlation currently standing at 0.76 (or 76%), just a few points behind the all-time high. The ratio of Bitcoin to gold climbed steeply throughout 2023, reaching 22.5 at its zenith, demonstrating the purch...
The correlation between Bitcoin and gold prices has strengthened in recent months, with the correlation currently standing at 0.76 (or 76%), just a few points behind the all-time high. The ratio of Bitcoin to gold climbed steeply throughout 2023, reaching 22.5 at its zenith, demonstrating the purchasing power of Bitcoin relative to gold. This kinship highlights the complex, shifting nature of Bitcoin, retaining select qualities of gold while also absorbing traits of stocks and commodities.
Bitcoin’s correlation to gold has fluctuated during much of the digital asset’s history. This means the two assets' prices have moved mostly independently—when one rose, the other didn't necessarily follow. But the correlation grew tighter after the market crash in 2020 at the start of the COVID-19 crisis, and it’s now once again approaching historical levels.
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