- Bitcoin’s correlation with Gold has increased, reflecting their rising roles as hedges against uncertainty.
- The BTC–gold correlation climbed to over 0.85, sharply up from -0.8 in October 2021.
- Gold prices reached an all-time high of about $4,179 per ounce, supported by geopolitical risks.
- Silver also hit a record high, with yearly gains exceeding those of gold.
- Experts note that institutions are turning to assets like Bitcoin and gold to counter money printing and inflation risks.
Bitcoin and gold have shown a growing connection as global investors seek assets that can protect them from economic uncertainty. According to CryptoQuant CEO Ki Young Ju, the link between Bitcoin and gold has increased significantly, with both assets strengthening their status as hedges.
Recent data from CryptoQuant reveals that the correlation between Bitcoin and gold is now above 0.85. This is a notable rise from a low of -0.8 in October 2021 and near the all-time high of 0.9 seen in April last year. Gold prices recently surged to a record $4,179 per ounce, with spot prices up 0.5% to $4,128. US gold futures for December delivery climbed to $4,158, marking a 57% gain since the start of the year. Silver also reached a record $53.60 before retreating slightly, recording an 85% increase this year.
In an online post, Ki Young Ju stated, “Gold keeps hitting new ATHs. BTC–gold correlation is high; digital gold narrative still alive. Inflation hedge demand isn’t dead yet.”
DWF Labs managing partner Andrei Grachev said this trend highlights changing investor views, with capital moving into what are seen as stable stores of value. He explained that Bitcoin’s present trajectory mirrors gold’s evolution from an active currency to a primary store of wealth. Trilitech’s Ben Elvidge agreed, saying Bitcoin’s limited supply and appreciation potential currently make it more useful as a store of value than as a payment method.
The rise in both gold and silver comes as more financial institutions adopt the “debasement trade,” where investors look for assets that can protect them from the loss of purchasing power caused by ongoing money creation. Entrepreneur Anthony Pompliano recently noted that many institutions now believe constant money printing will continue, increasing interest in assets like gold and Bitcoin as inflation hedges.
For more details, see the CryptoQuant data and additional commentary in the related gold futures report.
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