BTC–Gold Correlation Nears Record Levels, Backing Store-of-Value Thesis
Bitcoin is once again echoing gold’s footsteps as a correlation between the two assets surges, reinforcing their roles as safe-haven investments in uncertain macroeconomic conditions. According to CryptoQuant CEO Ki Young Ju, Bitcoin’s relationship with gold has tightened significantly in recent months, climbing to a correlation coefficient of over 0.85—a dramatic rise from -0.8 in October 2021.
“Gold keeps hitting new ATHs. BTC–gold correlation is high; digital gold narrative still alive. Inflation hedge demand isn’t dead yet,” Ju posted Tuesday on X, referencing gold’s explosive rally and Bitcoin’s mirrored performance.
Institutions View Bitcoin as a Digital Store of Value
Andrei Grachev, managing partner at DWF Labs, sees this growing correlation as a sign of how institutional capital is rotating into perceived stores of value. “Capital naturally rotates into assets perceived as stable stores of value,” Grachev explained, noting that Bitcoin is increasingly being treated as a digital analogue to gold.
He likened Bitcoin’s current trajectory to gold’s historical evolution: “It was once actively used as currency before becoming primarily a store of value. Bitcoin appears to be following a similar trajectory,” Grachev added.
Bitcoin’s Scarcity Echoes Gold’s Appeal
Ben Elvidge, head of commercial applications at Trilitech, agrees that Bitcoin’s programmatic scarcity is a defining feature, making it more compelling as a store of value than a medium of exchange. “Its capital appreciation potential has outweighed its ease of transfer for payments,” he said.
Meanwhile, gold surged to a new all-time high of $4,179.48 per ounce on Tuesday, with silver also reaching record levels. The metals’ explosive growth this year is being driven by geopolitical risk and inflation fears, as institutions hedge against currency debasement and aggressive monetary expansion.
As fears of endless money printing persist, Bitcoin’s alignment with gold’s trajectory may continue to solidify its status as the digital era’s preferred hard asset.
