Bitcoin’s correlation with other investment assets such as gold and stocks is being watched closely by investors.
In this context crypto- analysis platform Kaiko Research’Last week, according to data shared by Bitcoin (BTC) with gold The correlation between the two reached the highest level in more than a year.
While inflation has risen in recent months, bitcoin Gold also suffered declines. However, the data showed that the BTC gold correlation has reached its highest level in the last year, i.e. +0.4.
+1.0 correlation, BTC and it means that gold or any two assets are moving in the same direction.
bitcoin and gold’s correlation mostly played between -0.2 and +0.2 last year, meaning they are largely uncorrelated. In this context BTC The rising correlation between gold and gold means that the two assets are starting to move together.
“Over the past year, the correlation of Bitcoin to gold has ranged from -0.2 to +0.2, and for the most part BTC has been uncorrelated to gold.
However, as the US Dollar continued to strengthen, negatively impacting both cryptocurrencies and gold, the correlation between the two assets changed and the BTC-gold correlation increased.
Bitcoin’s increasing correlation with gold indicates a slight change in market structure.”
Stating that both BTC and gold have experienced significant decreases this year, Kaiko Research analysts said in their analysis:
“After benefiting greatly from the Russia-Ukraine war in the first quarter of the year, gold has lost all its gains.
Bitcoin was also down. Because, affected by the FED’s monetary policy tightening, BTC fell significantly.
In this context, as inflation rises, gold as a safe haven has failed to act as an asset that is expected to maintain or appreciate in economic downturns.”
which is a long way off from its $69,000 ATH in November 2021. bitcoinCurrently, it is trying to maintain the $20,000 level.
BTC, which has increased by 3.54% in the last 24 hours, is trading at $ 20,026 at the time of writing.
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