In a significant development, gold is again in the leading position in the market as Bitcoin has decoupled from it. As per CryptoQuant, a famous on-chain analytics platform, the latest disparity between Bitcoin and gold signifies a shift in the correlation between the two assets, especially amid inflationary pressures or economic uncertainty. The on-chain analytics provider offered insights into this scenario in its exclusive social media post.
Bitcoin has decoupled from gold, with prices dropping as gold hits record highs.This negative correlation signals a risk-averse market, with investors leaning towards traditional safe-haven assets like gold. pic.twitter.com/Qewhmvq4jp
— CryptoQuant.com (@cryptoquant_com) September 13, 2024
Earlier, BTC and Gold’s prices behaved similarly however BTC has not followed the current upward trajectory of gold. Gold has recently notched a record high making $2,700 possible in the longer run.
Bitcoin’s Decoupling from Gold Signifies Investors’ Inclination to the Precious Metal
CryptoQuant mentioned that the recent trends in the market indicate a deviation in the price movements of gold and Bitcoin. Though gold has touched record highs, the price of Bitcoin has witnessed a huge decline, mirroring a negative correlation. The respective decoupling denotes the increasing risk aversion among the investors.
In this respect, they are inclined toward conventional assets such as gold in comparison with Bitcoin. Gold has a centuries-long historical status as a store of value. It has always been beneficial during a crisis. On the other hand, irrespective of the increasing adoption and popularity of Bitcoin as digital gold, the asset is considered volatile and speculative by many.
Gold Futures See an Exclusive Record High Resulting from Waning USD and Decreased Treasury Yields
In the case of gold, an exclusive record high was made by the gold futures on Friday. The decreased Treasury yields as well as a waning USD have contributed a lot to this development, boosting the demand for gold. December gold futures jumped by $26.20 (1.02%), touching $2,607 per ounce in the case of the exchange COMEX.
