The latest findings indicate that the relationship between Bitcoin and Gold may weaken in the short term, as evidenced by their recent 30-day correlation trends.

Long-Term Correlation Between Bitcoin and Gold Remains Strong

A recent analysis from the on-chain analytics company, Glassnode, delves into the evolving dynamics of Bitcoin and Gold correlations across different timeframes. Correlation, in statistical terms, evaluates the extent to which two variables move in relation to each other—especially important in the world of assets.

When positive correlation is observed over any specified timeframe, it implies a synchronized movement between the two assets’ prices. A higher value closer to 1 indicates a stronger link.

This contrasts with a negative correlation, where assets tend to move in opposite directions, peaking at -1, illustrating a robust negative relationship.

Additionally, a correlation value of zero delineates independence; movements in one asset do not influence the other.

Below is a chart provided by Glassnode, showcasing the correlation trends for Bitcoin and Gold across 30-day, 90-day, and 365-day periods:

As illustrated in the chart, recent trends show a negative correlation between Bitcoin and Gold in the 30-day and 90-day windows. This suggests that both assets have been moving against one another over the last few months.

While the 90-day correlation shows only mild negativity, the 30-day indicator reveals a significant negative correlation of -0.53. This divergence has arisen as Gold has surged, contrasting with Bitcoin’s period of consolidation.

Bitcoin is often regarded as the digital counterpart to Gold, serving as a “safe haven” asset. However, this recent decoupling raises questions about the sustainability of that narrative.

This scenario seems limited to short-term observations. The 365-day correlation still stands strong at a positive 0.65, suggesting a potential for realignment over the long haul.

The pressing question remains: will Bitcoin continue to diverge from Gold in the foreseeable future, or will their historical relationship reassert itself soon?

Current Bitcoin Price Trends

Recent market movements indicate that Bitcoin’s price is on the rise, reaching approximately $114,500.