Safe Haven Split: Bitcoin-Gold Correlation Turns Negative For First Time In 6 Months

Data shows the correlation between Bitcoin and Gold has turned negative, a sign that the two assets are moving in the direction opposite to each ￰0￱ Coefficient Is Now Underwater For Bitcoin & Gold In a new post on X, CryptoQuant community analyst Maartunn has talked about the latest trend in the Correlation Coefficient between Bitcoin and ￰1￱ Correlation Coefficient is a tool from statistics that measures the relationship between two given variables over a given period, typically one ￰2￱ the current case, the variables are the prices of BTC and ￰3￱ Reading: Dogecoin Signal That Nailed The Top Says It’s Time To Buy When the value of the metric is positive, it means the price of one asset is reacting to movements in the other by traveling in the same ￰4￱ closer is the indicator to 1, the stronger is this ￰5￱ the other hand, the coefficient being under zero implies there exists a negative correlation between the two ￰6￱ is, they are moving opposite to each ￰7￱ extreme point for this side lies at ￰8￱ also exists a third case for the Correlation Coefficient: a level exactly equal to ￰9￱ a value indicates no correlation whatsoever exists between the ￰10￱ other words, their prices are independent of each other.

Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin Coefficient Correlation for Bitcoin and Gold over the past year: As displayed in the above graph, the Correlation Coefficient between Bitcoin and Gold shot up to a high above 0.5 back in June, suggesting the assets’ prices were tied to some ￰11￱ this peak, however, the correlation between the assets began to weaken, with the metric’s value slipping ￰12￱ a while it maintained inside the positive territory, but recently, that has ￰13￱ Reading: Bitcoin Whales Cut Back: Average Holdings At Lowest Since 2018 Gold has seen a price rally while BTC has been facing bearish action, resulting in the Correlation Coefficient turning slightly ￰14￱ is the first time since February that the indicator has gone ￰15￱ now, the two assets are almost independent, but it remains to be seen whether the negative correlation will continue to grow in the coming ￰16￱ is the traditional safe-haven asset, while Bitcoin is associated as its digital ￰17￱ where the two assets diverge can challenge the narrative for ￰18￱ Price At the time of writing, Bitcoin is trading around $110,100, down almost 2% over the past ￰19￱ image from Dall-E, CryptoQuant.

com, chart from ￰20￱