CryptoQuant CEO Ki Young Ju says that the correlation of bitcoin with gold will continue to increase as both asset classes strengthen their reputation as hedges in times of macroeconomic uncertainty.
On a Tuesday post on X, Ju noted that the BTC–gold correlation has risen sharply alongside gold’s surge to new all-time highs. “Gold keeps hitting new ATHs. BTC–gold correlation is high; digital gold narrative still alive. Inflation hedge demand isn’t dead yet,” He has written.
As per data CryptoQuant shows that BTC and gold correlations are currently at 0.85. In October 2021, they were -0.8. The correlation previously reached an all-time high (ATH) Around 0.9 in April of last year.
Related: Bitcoin to $1M? Why Gemini’s Winklevoss twins call it ‘gold 2.0′
Bitcoin is following the path of gold
The correlation shows also how institutional investors view Bitcoin, according to Andrei Grachev (Managing Partner at DWF Labs).BTC). “Capital naturally rotates into assets perceived as stable stores of value,” “He said”
Grachev likened Bitcoin’s history to that of gold, which evolved from a currency active into a wealth store. “It was once actively used as currency before becoming primarily a store of value. Bitcoin appears to be following a similar trajectory, which explains why its price movements increasingly echo gold’s dynamics,” “He said”
Ben Elvidge said Bitcoin is more useful as a currency than a transfer method due to the programmatic scarcity. “This is because its capital appreciation potential has outweighed its ease of transfer for payments,” “He said”
Related: What Central Bank Gold Buying Means For Bitcoin
Silver and gold reach new heights
The gold price reached an all-time record of $4,179.48 for one ounce on Tuesday. Gold prices rose by 0.5%, to $4128,49. US gold futures are for delivery in December. climbed To $4,158. Metal prices have already risen 57% in the past year due to geopolitical concerns.
Silver’s annual gain has now reached over 85%. It is outpacing the gold rally.
Gold and silver prices are surging as more financial institutions embrace the “debasement trade,” Investing in assets to hedge against the erosion of purchasing power due to continuous printing of money.
Anthony Pompliano, an entrepreneur from New York City, said: institutions now recognize You can also find out more about us here. “no one is ever going to stop printing money,” Demand for Hard Assets
Magazine: EU’s privacy-killing Chat Control bill delayed — but fight isn’t over
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
