Bitcoin’s Growing Correlation with Gold
Recent data from X suggests that the correlation between Bitcoin and Gold has been on the rise. The correlation metric tracks how closely the prices of two assets move in relation to each other.
- Positive correlation indicates both assets move in the same direction.
- Negative correlation means they move in opposite directions.
- A correlation of 1 or -1 represents the strongest relationship.
- A correlation of zero signifies no relationship between the assets.
Trend in 60-Day Bitcoin and Gold Correlation
The 60-day correlation between Bitcoin and Gold has fluctuated over recent years. Initially in negative territory, it has now turned positive, albeit at a value below 0.2.
- In 2022, the correlation peaked at nearly 0.5, indicating a stronger relationship.
- Investors consider correlation when diversifying their portfolios. Assets with high correlation offer limited diversification benefits.
Bitcoin Price Overview
Currently, the price of Bitcoin stands at approximately $68,700, showing a 2% increase over the past 24 hours.
Hot Take:
Bitcoin and Gold Correlation Trend
Recent data indicates a growing correlation between Bitcoin and Gold, highlighting the evolving relationship between these two assets.
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