In recent years, global indices have soared, and both Bitcoin and Gold are showing impressive performance. However, their interrelation is less obvious than previously assumed.
Global Indices, Bitcoin, and Gold Growth
Over the past year, global indices have risen by 28%, with gold reaching an all-time high. Bitcoin is also performing well, though it is 6% below its peak value.
Correlation Drop and Current Figures
The correlation between Bitcoin and gold has significantly decreased over the past four years—from over 50% to nearly zero. Today, the 90-day correlation of Bitcoin to gold stands at just 0.04, indicating minimal interaction between these assets.
Market: New Perspective on Bitcoin and Gold
On a correlation scale from 1 to -1, their current closeness near zero suggests independent price movements. As these assets chart separate paths, understanding their market relationship requires a revised strategy.
As Bitcoin and gold continue on their independent trajectories in the market, traders need to rethink their strategic approach to these assets.
