Correlation Between Bitcoin and Gold Prices Rises to 76%
Over the past few months, the correlation between Bitcoin and gold prices has surged to a new high in 2023, following bullish closures and the approval of a spot Bitcoin ETF. The correlation between Bitcoin and gold has historically exhibited significant fluctuations in the realm of digital assets. This implies that the prices of these two assets mostly move independently, and when one rises, the other may not necessarily follow suit. However, after the market crash that occurred at the onset of the COVID-19 crisis in 2020, their correlation became tighter, and it is now approaching historical levels once again. Currently, the correlation between Bitcoin and gold stands at 0.76 (or 76%). A correlation of 1 indicates a perfect positive correlation between two variables, in this case, the prices of Bitcoin and gold (while -1 represents perfect negative correlation). Although the correlation between Bitcoin and gold has not reached its historical peak, it is now getting closer.
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