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Breaking News: REX Shares Claims Its DOGE And XRP Spot ETFs Will Be Approved By US SEC Tomorrow

Safe Haven Split: Bitcoin-Gold Correlation Turns Negative For First Time In 6 Months

Keshav Verma
Keshav Verma
2 weeks ago
2 mins read
Bitcoin Vs Gold

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Data shows the correlation between Bitcoin and Gold has turned negative, a sign that the two assets are moving in the direction opposite to each other.

Correlation Coefficient Is Now Underwater For Bitcoin & Gold

In a new post on X, CryptoQuant community analyst Maartunn has talked about the latest trend in the Correlation Coefficient between Bitcoin and Gold. The Correlation Coefficient is a tool from statistics that measures the relationship between two given variables over a given period, typically one month. In the current case, the variables are the prices of BTC and Gold.

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When the value of the metric is positive, it means the price of one asset is reacting to movements in the other by traveling in the same direction. The closer is the indicator to 1, the stronger is this relationship.

On the other hand, the coefficient being under zero implies there exists a negative correlation between the two assets. That is, they are moving opposite to each other. The extreme point for this side lies at -1.

There also exists a third case for the Correlation Coefficient: a level exactly equal to zero. Such a value indicates no correlation whatsoever exists between the assets. In other words, their prices are independent of each other.

Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin Coefficient Correlation for Bitcoin and Gold over the past year:

Bitcoin Gold Correlation
Looks like the value of the metric has seen a plunge in recent days | Source: @JA_Maartun on X

As displayed in the above graph, the Correlation Coefficient between Bitcoin and Gold shot up to a high above 0.5 back in June, suggesting the assets’ prices were tied to some degree.

Following this peak, however, the correlation between the assets began to weaken, with the metric’s value slipping down. For a while it maintained inside the positive territory, but recently, that has changed.

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Gold has seen a price rally while BTC has been facing bearish action, resulting in the Correlation Coefficient turning slightly negative. This is the first time since February that the indicator has gone underwater.

For now, the two assets are almost independent, but it remains to be seen whether the negative correlation will continue to grow in the coming days. Gold is the traditional safe-haven asset, while Bitcoin is associated as its digital counterpart. Periods where the two assets diverge can challenge the narrative for BTC.

BTC Price

At the time of writing, Bitcoin is trading around $110,100, down almost 2% over the past week.

Bitcoin Price Chart
The price of the coin seems to have gone through a pullback during the past day | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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