Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.
A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.
Let me know if you want the raw data.
Originally published by me at:
https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprisingBitcoin and Gold are both considered as future assets that are good enough to be owned and invested in by anyone who likes them even though they still have several differences in certain aspects at this time. However, in general, there are still many people who consider Gold to be the best asset and this also applies to Bitcoin because the current Bitcoin investment volume is enough to prove that Bitcoin is also a very good asset. So sometimes some people don't really care about such a big correlation because when both assets experience an increase, of course those who hold both will feel happy.
People consider gold to be a better asset for investment as compared to Bitcoin, even if the difference exist wherein neither is backed by an external reserve.
One reason why people will always consider gold as a better investment option, is due to the fact that it is universally recognized and accepted not like Bitcoin which is still under scrutiny by several governments and individuals and even banned along with other cryptos in most regions currently.
The value of Bitcoin right now doesn't fall due to its success as a currency since Its launch till date and also the price sometime back was reported to have surpassed the price of silver and nearing the price mark for gold which shows that it is still being adopted and used mostly after the launch of the exchange traded funds.