Gold and Bitcoin prices: the surprising relationship

[rohasnagpal]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

[Upgrade00]

You should always include the link where you got your info from, especially if you're going to write it exactly as it's written there - https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising
Not including the source of your information can be termed plagiarism, especially if you don't state it's not your original content.

On the correlation between gold and Bitcoin for it to be taken into account, one would have to correlate the relationship between Bitcoin and other assets as well as gold and other assets. A positivemarket usually affects many assets in the same way leading to same results.

[DeathAngel]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

[AVE5]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Op I just figured it out that you're a newbie and this post happens to be your first post. While welcoming you to the forum, It's expected that when you're bringing up crucial or technical informations like this, it should always be supported with Source for authentications and for interested members to learn more of it direct from the source.
This is just as rohasnagpal has made a good leadership for you here .
👇                           👇                           👇                             👇

You should always include the link where you got your info from, especially if you're going to write it exactly as it's written there - https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising
Not including the source of your information can be termed plagiarism, especially if you don't state it's not your original content.

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Of course gold is a specification to store your asset values but can't be compared to bitcoin because the values of gold is only subjected to its scarcity while bitcoin subjects its valuability also on scarcities and massive adoptions which is to say bitcoin has lot of varieties by which it could drive potential uprises of its values.
So having your assets stored in gold commodity with the goal of making interests has potential losses that storing your assets on bitcoin as the both are volatile.

[m2017]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Almost everyone here will say that bitcoin is better than gold and invest in BTC. But is it right to compare these two financial instruments? Gold has always been used as a store of value, as a kind of defensive asset that has stability and the ability to retain value by offsetting inflation. Bitcoin is a means of increasing value, which is already a difference from gold. Look at the price chart of bitcoin and gold, and you will see that this asset allows you to increase value. Bitcoin allows not only to compensate for inflation, to surpass it many times over and make a profit.

The predominance of gold in the traditional financial sector is gradually being replaced by bitcoin, which may lead to the fact that gold's influence and therefore value will decrease, in which case, I would also not risk investing in such a financial instrument at a decline in investor interest. In contrast to bitcoin, in which investor interest is only increasing, which is easily confirmed by big institutional investors pouring huge amounts of money into this industry.

[Faisal2202]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Never analyzed this data before, what benefit of this could be, Does it also mean when BTC loses value Gold also and vice versa, if that's the case, then those people who used to say we should diversify our investment in order to minimize the risk of losing funds by investing one part in BTC and another in Gold as there prices are independent of each other, are all wrong now!

BTW I am one of those people, who thought BTC and Gold prices are not dependent on each other, in my opinion, they are not directly proportional to each other, TBH I don't think it has anything to do with the price of any of the two, like it's not like BTC following gold or gold following BTC. I think its a coincident. What's the source of this fact BTW.

[harapan]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Gold has been an assets for so long,but bitcoin speculators have choosed bitcoin more.bitcoin has been used over or more than gold all because bitcoin is better off to handle certain economical recessions and crisis.
They both secure the same similarities,but bitcoin features and benefits relatively seems to outweighs gold in this age ranging from popularity,security,decentralization e.t.c
Bitcoin's strength  has outperformed gold existence,its not just that gold doesn't offer benefits or has limited growth potentials.Gold could be preferred in some cases over bitcoin,and vice versa.

[Fara Chan]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

Bitcoin and Gold are both considered as future assets that are good enough to be owned and invested in by anyone who likes them even though they still have several differences in certain aspects at this time. However, in general, there are still many people who consider Gold to be the best asset and this also applies to Bitcoin because the current Bitcoin investment volume is enough to prove that Bitcoin is also a very good asset. So sometimes some people don't really care about such a big correlation because when both assets experience an increase, of course those who hold both will feel happy.

[btc78]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

It makes sense since most investors of bitcoin tend to diversify their portfolios by investing in different assets not only in cryptocurrencies. Usually when they invest in bitcoin they also invest in gold. Most people have recognized both assets as similar in a way that they are both assets used to fight against inflation.

Even though they are correlated, this does not mean that an increase in price of gold will also cause an increase in price of bitcoin.

[trendcoin]

Both are solid money. Both are in limited supply. Both have advantages and disadvantages compared to each other. I am trying to accumulate both Bitcoin and gold. Bitcoin mass adoption is not yet complete. This is its biggest advantage over gold. Also, it has supply control, it is easier to transport and it can be divided into smaller pieces. When mass adoption is complete, it will be at the top of the strongest solid money along with gold...

Trading between these two assets means trading between solid money, and this may be the best option for us...

[Cryptomultiplier]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

Bitcoin and Gold are both considered as future assets that are good enough to be owned and invested in by anyone who likes them even though they still have several differences in certain aspects at this time. However, in general, there are still many people who consider Gold to be the best asset and this also applies to Bitcoin because the current Bitcoin investment volume is enough to prove that Bitcoin is also a very good asset. So sometimes some people don't really care about such a big correlation because when both assets experience an increase, of course those who hold both will feel happy.

People consider gold to be a better asset for investment as compared to Bitcoin, even if the difference exist wherein neither is backed by an external reserve.

One reason why people will always consider gold as a better investment option, is due to the fact that it is universally recognized and accepted not like Bitcoin which is still under scrutiny by several governments and individuals and even banned along with other cryptos in most regions currently.

The value of Bitcoin right now doesn't fall due to its success as a currency since Its launch till date and also the price sometime back was reported to have surpassed the price of silver and nearing the price mark for gold which shows that it is still being adopted and used mostly after the launch of the exchange traded funds.

[kentrolla]

I don't think this is relevant comparison a gold and Bitcoin are different in every simple aspect and have different working dynamics hence we cannot justify any comparison between gold and Bitcoin and rather we may check for other high risk asset and compare its growth with Bitcoin to an extend but still we cannot find a contender with the same aspects as Bitcoin.

[kryptqnick]

Looking at the price charts, I think 2017-2018 were quite different for gold and Bitcoin, but looking over the last few years, the charts do look fairly similar, so perhaps it's reasonable to speak of a correlation. Gold is still clearly relevant, as it's still growing. Its overall growth over long periods of time is undoubtedly lower than that of Bitcoin, but again, looking at the last few years, it's comparable because Bitcoin's 2024 ATH isn't far off from its 2021 ATH, and who knows, maybe Bitcoin will now grow slower and more steadily, just like gold does.

[Marvell1]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

I think any asset has its own risks, there is no risk-free asset including gold or real estate, but their risk will be lower than bitcoin. In my opinion, gold is the perfect safe haven for people who like safety and do not want to take risks. Meanwhile, bitcoin has higher risk but that does not mean it is not safe, and if we take the risk then we have a chance to get a bigger reward.

The reason most people will choose to invest in bitcoin and not gold is because everyone wants to get rich with their little capital and only bitcoin can provide that opportunity, both gold and real estate are it is impossible to do. But if you owned millions of dollars or had enough money to live a lavish lifestyle, would you still invest in bitcoin or would you choose a less risky solution? I guess then, you won't choose bitcoin anymore but will choose gold and real estate instead.

[lombok]

I don't think this is relevant comparison a gold and Bitcoin are different in every simple aspect and have different working dynamics hence we cannot justify any comparison between gold and Bitcoin and rather we may check for other high risk asset and compare its growth with Bitcoin to an extend but still we cannot find a contender with the same aspects as Bitcoin.

Gold and Bitcoin do have very different forms, Gold has a physical form, while Bitcoin is a digital currency that does not have a physical form. In fact, we can also see that the total supply available for the two is also different, Bitcoin has a very limited total supply, while Gold has an unlimited supply. Bitcoin should be more expensive than Gold because it has fewer entities and is harder to get.

[Bureau]

I only understand one big difference between these two assets and that it is their USD value. The price of Bitcoin has been increasing at a steady rate for the last 15 years  whereas the price of Gold remain stagnant. Investing in Gold is still considered secured because 15 years back the alternative to fiat was always Gold. As for now the options are changing and there will be a time when Bitcoin will be more famous than Gold.

I doubt that with the increase in price of Gold the price of Bitcoin increase. I think it is the opposite when Bitcoin price increases the price of Gold does the same. Bitcoin is so volatile that it's not that easy to predict the price or correlate it with a physical object.

[Reatim]

One reason why people will always consider gold as a better investment option, is due to the fact that it is universally recognized and accepted not like Bitcoin which is still under scrutiny by several governments and individuals and even banned along with other cryptos in most regions currently.

That's definitely one of the factors that make people a bit reluctant to use bitcoin hwever some people actually see bitcoin's lack of dependency on the government to operate is what attracts most people. No one controlling bitcoin and its price and it being decentralized is exactly what people want.

[davis196]

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

Are you trying to promote your own blog, OP? What is this weird cryptoprofits.substack.com domain name?
Anyway, I think that having a correlation means having interdependence. Which means that the gold price goes up BECAUSE the Bitcoin price is going up and vice versa. Such interdependence between gold and Bitcoin cannot be proven, which means that the correlation between BTC and Gold might not exist. Both BTC and Gold are just two assets that are in bull markets currently, which is the main reason why their prices are going up.

[angrybirdy]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

that's your opinion and that's valid but I believe that both of them has a risk if we considered it as one of our investments. As far as I know, the value of golds appreciate in the long run that's why many people are much more interested in buying golds nowadays because there's a lot of proof that gold is one of the best tangible assets that we should have, same goes to bitcoin but we are all aware that the value of this coin is volatile and we can't predict when the value will increase.

[Sam2589]

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

that's your opinion and that's valid but I believe that both of them has a risk if we considered it as one of our investments. As far as I know, the value of golds appreciate in the long run that's why many people are much more interested in buying golds nowadays because there's a lot of proof that gold is one of the best tangible assets that we should have, same goes to bitcoin but we are all aware that the value of this coin is volatile and we can't predict when the value will increase.