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Bitcoin-Gold Correlation Rises Back to ‘Digital Gold’ Era Levels, CryptoQuant CEO Says

Published 2 hours ago 1 min read
Bitcoin-Gold Correlation Rises Back to ‘Digital Gold’ Era Levels, CryptoQuant CEO Says

CryptoQuant CEO said Bitcoin’s correlation with gold has climbed back to levels associated with the earlier “digital gold” narrative. The comment suggests Bitcoin and gold are again moving more closely in tandem, according to the referenced analysis.

Key Takeaways

  • 01 Bitcoin’s correlation with gold has reportedly increased.
  • 02 The reported level is comparable to the period when Bitcoin was widely framed as “digital gold.”
  • 03 The claim was attributed to CryptoQuant’s CEO in a Bloomingbit report.
  • An analysis said Bitcoin and gold prices have recently begun moving more closely in tandem again.
  • Ki Young Ju said the 90-day Pearson correlation coefficient between Bitcoin and gold has rebounded quickly and risen to above 0.6.
  • He said the latest reading shows Bitcoin and gold price movements, which had diverged sharply earlier this year, have recently moved closer again.

Forecast Trend Report by Period

Photo: Screenshot from Ki Young Ju's X account

Bitcoin and gold prices have recently started moving more closely in tandem again, according to an analysis.

Ki Young Ju, chief executive officer of CryptoQuant, wrote on X on August 10 that the correlation between Bitcoin and gold has returned to levels seen in the “digital gold” era.

A CryptoQuant chart shared by Ju shows the 90-day Pearson correlation coefficient between Bitcoin and gold. A reading closer to 1 indicates the two assets tend to move in the same direction, while a reading below 0 indicates they tend to move in opposite directions.

The chart shows the Bitcoin-gold correlation remained mostly in positive territory through last year. It then dropped sharply from late last year, falling to around minus 0.8 early this year. At the time, gold prices stayed elevated while Bitcoin moved differently, leaving the two assets sharply out of sync.

The correlation has since rebounded quickly and turned positive again. It now stands above 0.6, suggesting Bitcoin and gold have recently resumed moving in the same direction.

Bitcoin has long been compared with gold as “digital gold” because its supply is limited. The latest reading shows that Bitcoin and gold, which had diverged sharply earlier this year, have recently moved closer again.

Attribution

Originally reported by bloomingbit

#bitcoin#crypto

Quick Answers

What did the CryptoQuant CEO say about Bitcoin and gold?

The CEO said Bitcoin’s correlation with gold has risen back to levels seen during the “digital gold” era.

What does Bitcoin-gold correlation mean?

It refers to how closely Bitcoin and gold prices move relative to each other. The report says their correlation has increased.

Does the report say why Bitcoin’s correlation with gold rose?

No. The provided excerpt reports the increase in correlation but does not give a reason for it.

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