BTC–Gold Correlation Hits New High as Both Assets Draw Investors
Bitcoin’s correlation with gold has increased significantly, now standing above 0.85, as both assets are viewed as hedges against macroeconomic uncertainty. Gold has reached new all-time highs, with spot prices above $4,100 per ounce and a 57% gain this year, while silver surged past $53 with an 85% annual increase. Institutional investors are rotating capital into assets considered stable stores of value amid ongoing concerns about inflation and currency debasement. Bitcoin’s price behavior increasingly mirrors gold, reflecting its evolving role as a store of value rather than a medium of exchange, primarily due to its programmatic scarcity and appreciation potential. This trend parallels gold’s historical transition from currency to wealth preservation. The rise in gold, silver, and Bitcoin is largely attributed to heightened demand for hard assets as protection against persistent money printing by central banks.
