Correlation between BTC and gold hits record high

Correlation between BTC and gold hits record high

  • Bitcoin shows stable correlation with gold

  • Bitcoin price collapsed after falling gold quotes

  • Correlation between BTC and gold hits record high
  • Experts consider Bitcoin and gold as defensive assets

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Over the past few days, Bitcoin has shown a direct correlation with gold. Since March of this year, MTC almost exactly repeats the price dynamics of the precious metal.

Correlation between BTC and gold hits record high

 

How Gold Affects Bitcoin Price

The corona crisis has shown that it is gold that is the most protected asset and that “haven of peace”, which investors are talking about. At a time when the stock, foreign exchange and commodity markets collapsed one by one, the gold market not only did not lose in value, but, on the contrary, grew amid financial hysteria. Since March this year, bitcoin has shown a clear correlation with the precious metals market. This was announced by Alex Thorne, an investor in  Avon Ventures on Twitter.

Bitcoin 60d correlation to gold is pretty wild right now. Highest ever. pic.twitter.com/MsWdtzSBl3


 

— Alex Thorn (@intangiblecoins) September 8, 2020

Correlation between BTC and gold hits record high

Bitcoin does show a strong correlation with gold, according to Thorne’s data. Thorne’s opinion is shared by other Twitter members. For example, a user @akkaufman wrote:

“Healthy money comes in many different forms, but their unifying feature is that it cannot be arbitrarily created out of nothing and depreciated at the whim of erroneous politicians. The BTC / XAU correlation deserves a boost because they are the same type of money. Good money”.

Thus, Thorne proves that the price of bitcoin largely depends on the price of gold in the international market..

Is correlation bad for Bitcoin?

Earlier BeInCrypto reported that Bloomberg experts love regularly indicate in parallel in the dynamics of prices for bitcoin and gold. Recently they drew attention to the fact that the rally in gold to new all-time highs happens in tandem with «digital gold» – bitcoin. Indeed, the price of gold dropped to $ 1,900 per ounce immediately after information appeared in the media about the invention of the first vaccine against coronavirus by Russia..

Immediately after the fall in gold quotes, the price of bitcoin also fell. This reinforces the current trend: Bitcoin seems to be breaking away from the dynamics of the stock market. Investors are increasingly inclined to consider it not a speculative asset, but store of value – along with precious metals. Accordingly, the dynamics of gold and silver may become a more reliable indicator of Bitcoin behavior in the coming months..

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