Definition
The correlation between Bitcoin and gold over 30-day and 90-day periods measures the strength and direction of their price relationship.
Fluctuating Trends
Bitcoin’s correlation to gold has shown varying trends over the past three years. The 30-day and 90-day correlation metrics exhibit intermittent peaks and troughs, indicating different degrees of correlation between Bitcoin and gold prices.
Significant Movements
From January 2021 to mid-2024, Bitcoin’s price experienced substantial fluctuations. There was a sharp rise to over $60,000 in late 2021, followed by a steep decline into 2022 and a subsequent recovery after 2023. During these times, the 30-day and 90-day correlations often diverged, reflecting Bitcoin’s unique volatility compared to gold.
Rising Trends in 2024
At the end of the first quarter of 2024, Bitcoin’s correlation to gold showed a rising trend. Both the 30-day and 90-day correlations approached one. This period aligns with Bitcoin reaching new heights before the halving in March 2024, with gold following shortly after in May.
Decoupling Trend
In the past 30 days, Bitcoin and gold have increasingly decoupled from each other. This trend is similar to the recent pattern observed between Bitcoin and the S&P 500. It raises the question of whether Bitcoin and gold will continue to diverge or eventually converge.
The post Bitcoin-gold correlation fluctuates but trends downwards post-halving appeared first on CryptoSlate.
