Bitcoin's correlation to gold hits 11-month low amid capital reallocation, analysts say
Quick Take Bitcoin’s correlation with gold has dropped to an 11-month low. Gold prices are down over 5%, while bitcoin has posted substantial gains in the past week. Gold’s decline comes amid a stronger U.S. dollar and rising Treasury yields following Trump’s election. Markets appear to be anticipating inflationary policies that may prompt the Fed to slow rate cuts.
"Bitcoin is gaining traction as 'digital gold,' and this movement appears increasingly structural, with capital reallocating from traditional safe havens like gold into crypto," QCP Capital analysts said.
Meanwhile, K33 Head of Research Vetle Lunde noted that bitcoin’s correlation to gold has reached an 11-month low following the election, reinforcing the notion that the digital asset is carving out its own narrative amid economic uncertainty.
At a market cap of $1.73 trillion, bitcoin recently surpassed the value of silver — though it still trails far behind gold’s $17.5 trillion market. However, QCP Capital analysts suggest that even a small reallocation—just 1% of capital from gold into bitcoin —could drive the digital asset's price up to nearly $97,000.
Trump’s election win poses challenges for gold
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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