- The correlation between Bitcoin and its traditional rival Gold reached a four-month high on July 22.
- At the same time, the cryptocurrency’s correlation with the S&P 500 index plunged to its one-month low.
- The readings appeared as the US 10-year Treasury real yield sank to a record low last seen in 2012.
The proximity between Bitcoin and Gold is growing as investors look for havens against an underperforming US bonds market.
A report fetched by Skew, an on-chain analysis platform, shows that Gold’s one-month realized correlation with Bitcoin spiked to its four-month peak on July 22. At 40.4 percent, the mutuality between the two assets almost recovered wholly from its April 27 bottom of minus 42.8 percent.
BTCUSD-XAUUSD Realized Correlation. Source: Skew
Bitcoin’s shift towards gold also coincided with its withdrawal from the S&P 500. The one-month realized correlation between the cryptocurrency and the S&P 500 fell to 42 percent two weeks after peaking at a record high level. It is now near its one-month low.
BITCOIN, GOLD PRICE BEHAVIORS
Bitcoin and Gold prices have risen sharply this week. The cryptocurrency, which was stuck below $9,300 for two consecutive weekly sessions, broke above $9,500. Meanwhile, the precious metal topped at $1,870 an ounce for the first time since September 2011.
Bitcoin-S&P 500-Gold price action in 2020. Source: TradingView.com
America’s equity indexes also fared well, trading now above their pandemic-induced March 2020 lows.