Сorrelation between gold and bitcoin price revealed
From January to July 2018, one could observe a correlation between the price charts of bitcoin and gold. In February and May both assets shadowed each other’s price growth. However, in both cases the downtrend still remained. This situation persisted until July, when the price of this asset did not change much for several months.
On November 15, 2018, there was a 50% drop in the price of Bitcoin. At the same time, it was a turning point for gold price. Since then, gold has added almost 10% in 3 months. This is a drastic change for one of the most stable assets on the stock market. Gold price increased even in December 2018, when many share lost more than 20% of their value.
So, if we compare two assets – real gold and «digital gold», we see that the correlation between them is quite strong, but it’s divergent.