Bitcoin-Gold Correlation Rises Back to ‘Digital Gold’ Era Levels, CryptoQuant CEO Says
Summary
- 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.
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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.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.