Bitcoin-Gold correlation surpasses 0.85…'Digital gold' narrative resurfaces

Son Min

Summary

The correlation between Bitcoin and gold has surpassed 0.85, indicating the price movements of the two assets are strongly linked.
Leading experts say inflation hedge demand remains valid for both Bitcoin and gold as stores of value.
They reported that gold has risen 57% year-to-date, reaching an all-time high of $4,179.48 per ounce.

Bitcoin (BTC) and gold price movements are again strongly linked. As inflation and geopolitical uncertainty increase, analysts say both assets are strengthening their positions as stores of value.

On the 14th (local time), according to Cointelegraph, Ki Young Ju, CEO of CryptoQuant, said, "With gold reaching an all-time high, the correlation between Bitcoin and gold has exceeded 0.85," adding, "the digital gold narrative remains valid, and inflation hedge (hedge) demand is alive." This marks a significant rise from around -0.8 in October 2021 and approaches the peak of 0.9 recorded last April.

Andrei Grachev (Andrei Grachev), managing partner at DWF Labs, said, "Institutional funds naturally move to assets that reliably store value," and added, "Bitcoin is following gold's historical shift from a monetary function to a store of value." He added, "This is why Bitcoin's price movements are increasingly resembling gold's pattern."

Meanwhile, spot gold hit an all-time high of $4,179.48 per ounce today. Silver also rose to $53.60, surging 85% year-to-date. Gold has risen 57% so far this year, which is interpreted as the result of a strengthened 'debasement trade' caused by geopolitical risk and concerns over currency value decline.

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