Fairly strong correlation between Bitcoin (black line) and gold on this chart? Notice I inverted/flipped the gold chart upside down. The correlation here demonstrates that Bitcoin generally trades in the opposite direction to gold (in the modern era). Bitcoin does not appear to be digital gold or an inflation hedge. When the market is worried about Geopolitical risk, inflation, market risk, they generally buy gold. When they want 'risk on' speculation, high growth, they buy tech stocks and crypto.
Will be interesting to revisit this in the future to see if it was a temporary phenomenon, or a longer term 'rule'.
Will be interesting to revisit this in the future to see if it was a temporary phenomenon, or a longer term 'rule'.