TraderEye Market View: Is it common to think that there is a correlation between gold and bitcoin

Friday, October 25, 2024

Is it common to think that there is a correlation between gold and bitcoin

There is an attitude that sees a correlation between gold and bitcoin. Many see Bitcoin as "digital gold", so there are a few main connections:

Safe haven asset: Both are seen as assets that can be held in situations of economic instability. When there is uncertainty in the stock market or common currencies, people may turn to investing in gold and bitcoin.

Volatility: In recent years, the price of Bitcoin has been very volatile, while gold is considered a more stable asset. However, sometimes in volatile markets, the two can show similar patterns.

Investors' view: Different investors may prefer one asset over the other, depending on economic conditions. For example, increases in Bitcoin may decrease the demand for gold and vice versa.

In general, the correlation between the two can change, so it is recommended to follow up-to-date data and analysis.

Attached is a daily graph comparison between the price of Bitcoin and the price of gold, there does not seem to be a correlation.

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