Bitcoin Gold Correlation Hits 3-Month High – Crypto News – Crypto News
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Bitcoin Gold Correlation Hits 3-Month High Bitcoin Gold Correlation Hits 3-Month High

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Bitcoin Gold Correlation Hits 3-Month High – Crypto News

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The relationship between bitcoin and traditional safe-haven asset gold has risen to a three-month peak as fresh capital in both begins to slow.

Prices for bitcoin and the yellow metal have declined week over week since Feb. 1, while traditional equities — reflected in the S&P 500 — continue their uptrend.

Both assets experienced a surge in January before enduring a slowdown in February — a month in which interest rate expectations increased following a robust US jobs report.

Bitcoin, often viewed as a high-beta version of gold, has outperformed gold this year with a ratio between the pair rising to its highest level since the fall of crypto exchange FTX.

The weekly correlation coefficient between the two assets remains mildly positive, at 0.59, with uncertainty over whether they’ll continue to move in tandem expected for the remainder of the quarter, research platform Kaiko said monday

Gold was last seen changing hands for roughly $1,854 per troy ounce — up around 1.7% year to date. Bitcoin’s price, meanwhile, is hovering around $21,800 — up 31% so far in 2023.

increasing short-term strength of the US dollar and ongoing inflationary pressures continue to clamp down on this year’s bullish momentum around digital assets and the precious metal.

Last week, industry participants pointed to the SEC’s move to charge crypto exchange Kraken over its US staking products as adding to additional sell-side pressure for the entire sector.

The shutdown of Kraken’s staking service may open the door for a number of decentralized options, Kaiko said. Within hours of the regulator’s decision, pricing on tokens of some of the largest decentralized ether staking protocols shot up.

Traditional equities remain buoyed by strong demand this year.

The S&P 500, as well as the Dow Jones Industrial Average, ended Monday’s trade 1% higher on the day as the correlation between stocks and digital assets begins to diverge.

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