Bitcoin and gold have highest correlation in over a year, as gold approaches its all time high

Quick Take

  • Many narratives occur in the Bitcoin ecosystem, and one of them is Bitcoin is digital gold due to the fundamentals of Bitcoin.
  • BTC and gold have had a significant correlation throughout 2022 and have mirrored each other, albeit BTC was a lot more volatile than gold, as you can see by the trading view graph below.
  • However, the correlation did go away when the FTX collapse occurred, which fundamentally had nothing to do with Bitcoin, other than FTX holding Bitcoin on its balance sheet.
  • As the dust settles from the FTX collapse, the correlation has shot up to a one-year high of 93% correlation, while gold is on the periphery of breaking out to an all-time high approaching $2k an ounce.
BTC, Gold Correlation: (Source: Trading View)

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