Is the Growing Correlation Between Bitcoin and Gold a Bullish Sign?

Is the Growing Correlation Between Bitcoin and Gold a Bullish Sign?

Gate Trade News Friday, July 31, 2020 19 0

The correlation between Bitcoin and gold daily returns is increasing, leading investors to expect further upside from BTC price.

 

As Bitcoin (BTC) rallied to its 2020 high of $11,392 this week, its correlation with gold increased and at the moment, BTC’s monthly correlation with gold on daily returns sits at 0.66, according to data from CryptoCompare. 

 

The correlation started to increase as gold broke through $1,900, nearing a new high before pulling back alongside Bitcoin. 

 

The increase in correlation represents a trend shift as the relationship between the two had previously been falling according to data from Kraken exchange's research team.