Bitcoin’s Correlation With Gold Hits 11-Month Low

Since the recent US presidential election, gold has fallen by around 5%, while Bitcoin has risen by over 20%, indicating a marked change in the relationship between these two assets.

Analysts believe that capital may move from traditional safe assets such as gold to BTC as investors reassess their strategies in uncertain economic times.

Analysts at QCP Capital say Bitcoin, often referred to as “digital gold“, is increasingly attracting capital that could traditionally flow into gold, signaling a structural shift toward digital assets as alternative safe havens.

With a market capitalization of about $1.73 trillion, Bitcoin recently surpassed the total value of silver, but still lags far behind gold, which has a market valuation of $17.5 trillion. However, QCP Capital analysts believe that a small change – such as shifting just 1% of gold’s capital to Bitcoin – could boost the cryptocurrency’s price to nearly $97,000.

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In parallel, head ofresearchat K33 Vetle Lunde pointed out that Bitcoin’s correlation with gold has fallen to an 11-month low, supporting the idea that BTC is establishing a standalone position in the market. The thirty-day correlation between the two assets has also reached a similar low, illustrating this divergence in performance.

Alexander Zdravkov