Bitcoin’s correlation with gold is on the rise as both assets continue to gain recognition as hedges against macroeconomic uncertainty, according to CryptoQuant CEO Ki Young Ju.
In a post on X on Tuesday, Ju highlighted that the BTC–gold correlation has surged in tandem with gold hitting new all-time highs. “Gold keeps reaching new ATHs. BTC–gold correlation is high; the digital gold narrative is still alive. Demand for inflation hedges isn’t dead yet,” he said.
CryptoQuant’s data shows that the BTC–gold correlation currently exceeds 0.85, a significant increase from -0.8 in October 2021. The correlation previously hit a record high of around 0.9 in April of last year.
Bitcoin Mirrors Gold’s Path as a Store of Value
According to Andrei Grachev, managing partner at DWF Labs, Bitcoin’s growing correlation with gold reflects how institutional investors view the cryptocurrency. “Capital naturally rotates into assets perceived as stable stores of value,” he explained.
Grachev drew parallels between Bitcoin and gold, noting that gold transitioned from an active currency to a store of wealth. “Gold was once used as currency before evolving primarily into a store of value. Bitcoin seems to be following a similar trajectory, which helps explain why its price movements increasingly mirror gold’s,” he said.
Ben Elvidge, head of commercial applications at Trilitech and product lead for Uranium.io, added that Bitcoin’s utility today leans more toward being a store of value than a medium of exchange, thanks to its programmatic scarcity. “Its potential for capital appreciation currently outweighs its convenience for payments,” he noted.
Gold and Silver Hit Record Highs
Gold prices surged to an all-time high of $4,179.48 per ounce on Tuesday. Spot gold rose 0.5% to $4,128.49, while U.S. gold futures for December delivery climbed to $4,158. The metal has gained 57% so far this year, driven largely by geopolitical risks.
Silver also reached a record high of $53.60 before settling at $52.27, extending its yearly gain to over 85%, surpassing gold’s rally.
The recent surge in gold and silver comes as financial institutions increasingly embrace the “debasement trade,” investing in assets that protect against the erosion of purchasing power from ongoing money printing. Entrepreneur Anthony Pompliano noted last week that institutions now recognize that “no one is ever going to stop printing money,” fueling demand for hard assets.
