Bitcoin Correlation to Gold Reaches a Nearly 1-year Low

Reading Time: < 1 minute

Since the recent US presidential election, there has been a notable shift in the correlation between gold and Bitcoin. 

While gold has seen a 5% drop, Bitcoin has seen a rally of over 20%, highlighting a change in trend. 

Some experts believe this is due to investors re-evaluating their safe-haven strategies and shifting their capital from gold to Bitcoin.

According to analysts at QCP Capital, Bitcoin is seen as a digital version of gold, leading to a structural movement of capital away from traditional safe havens. 

Meanwhile, Vetle Lunde, research director at K33, notes that Bitcoin’s correlation with gold has reached a low not seen in 11 months since the election, underscoring the emergence of a different narrative for the crypto in times of economic uncertainty.