Bitcoin-Gold Correlation Hits New High
The correlation of Bitcoin with gold has been rising, reinforcing its image as a digital version of the precious metal. According to CryptoQuant CEO Ki Young Ju, both assets are gaining traction as safe havens against economic instability. Ju shared on X that “Gold keeps hitting new ATHs. BTC–gold correlation is high; digital gold narrative still alive. Inflation hedge demand isn’t dead yet.”
CryptoQuant data shows that the correlation between Bitcoin and gold now exceeds 0.85, up from –0.8 in October 2021. The two assets last reached a correlation peak of around 0.9 in April 2024, indicating strong alignment in their market behavior.
Bitcoin mirrors gold’s evolution
Andrei Grachev of DWF Labs noted that institutional investors are increasingly treating Bitcoin as a stable store of value. “Capital naturally rotates into assets perceived as stable stores of value,” he explained, comparing Bitcoin’s rise to gold’s historical transition from currency to wealth storage.
Ben Elvidge from Trilitech added that Bitcoin’s limited supply supports its role as a long-term store of value rather than a payment tool. “Its capital appreciation potential has outweighed its ease of transfer for payments,” he said.
Precious metals continue to rally
Gold hit a new all-time high of $4,179.48 per ounce on Tuesday, while silver surged to $53.60, its highest level ever before stabilizing at $52.27. Gold has risen 57% this year, and silver is up more than 85%, both benefiting from rising geopolitical tensions and investor demand for hard assets.
Growing demand for inflation hedges
Financial institutions are increasingly turning to what’s known as the “debasement trade” — investing in assets like Bitcoin, gold, and silver to protect against the erosion of purchasing power. As entrepreneur Anthony Pompliano recently remarked, institutions are recognizing that “no one is ever going to stop printing money,” fueling long-term demand for these limited-supply assets.
Together, these trends show that Bitcoin’s growing connection to gold reflects a broader shift in investor behavior — one that values scarcity and stability in a time of persistent global uncertainty.
Sources:
https://cointelegraph.com/news/bitcoin-gold-correlation-hits-new-high-as-both-assets-surge