Bitcoin’s 90-day correlation with gold hits nine-year high
BTC’s 90-day price correlation with gold has reached +0.56, its highest level since most data providers started measuring it in January 2017 and higher than its prior record of +0.5 in November 2020. Meanwhile, the 90-day correlation of BTC with the Nasdaq 100 index slid to roughly +0.30 over the same window, a one-year low. Pearson price correlations range from -1 to +1. Perfect correlation is +1, meaning the assets always affect one another’s price and never decouple in their correlated movements. At 0 or “no” correlation, the assets never affect one another’s price. At -1, the assets move in perfectly opposite directions — one rising and one falling by proportionally consistent amounts. Mathematicians choose a set length of time to determine how correlated their prices are; for example, over the last 90 days. The 90-day correlation of BTC with the Nasdaq 100 index slid to roughly +0.30. At a +0.56 correlation and rising, the narrative ...