Bitcoin and gold correlation reaches yearly highs
Join Our Telegram channel to stay up to date on breaking news coverage The correlation between Bitcoin and gold has taken a turn. Investors are currently avoiding the two assets amid increasing interest rates and a strengthening US dollar. This has hurt the values of both Bitcoin and gold. Correlation between Bitcoin and gold reaches yearly highs In the previous years, Bitcoin and gold remained largely uncorrelated. The correlation between Bitcoin and gold stood at negative 0.2 and positive 0.2 in the past. However, this year has seen quite a change amid turmoil in the cryptocurrency and traditional markets. The turmoil witnessed across financial assets this year has seen some narratives weakening, such as the one of Bitcoin being the “digital gold” and a hedge against inflation. Gold is also losing its use case as a store of value. Bitcoin and gold have dropped significantly as inflation levels reach new highs. The monetary tightening policies by global centr...