Bitcoin-Gold Correlation Drops to Lowest Since Fall 2022

Bitcoin (BTC) has risen in price by more than 80% since January. It is trading above $30,000 this week.

However, many experts believe that the recent run of the cryptocurrency is just one of the stages of a long-term bullish trend.

BTC dominance has exceeded 50%, according to data from CoinGecko. A similar situation was observed at the beginning of 2020.

If bitcoin has been showing stunning performance in recent weeks, then the precious metals market, on the contrary, is declining.

The Glassnode report notes that the correlation between BTC and gold has dropped to its lowest level since the fall of 2022.

The dependence of bitcoin on gold and silver in monthly terms is -0.78 and -0.90, respectively, analysts emphasized.

In previous periods, a similar situation was observed in May and September 2021 and in May 2022, when the crypto market was at the bottom, while gold and silver, on the contrary, added value.

Galaxy Digital CEO Mike Novogratz believes that bitcoin in terms of capitalization will soon catch up with gold. This will happen at the moment when institutional investors become more active in cryptocurrencies.

Moreover, the businessman did not rule out that BTC could even outperform the precious metal in the future.