• Bitcoin and gold have the highest correlation in over a year, with a 93% correlation.
• Gold is approaching its all time high, and the dust from the FTX collapse has settled.
• Bitcoin is seen as digital gold due to its fundamentals of supply and demand.

Amidst the ever-changing Bitcoin ecosystem, one narrative that remains constant is the notion of Bitcoin as digital gold due to its fundamentals of supply and demand. Over the past year, this correlation has been demonstrated in the market, with Bitcoin and gold having a significant correlation throughout 2022.

Recently, this correlation has reached a one-year high of 93%, while gold is on the brink of breaking out to an all-time high. This surge may be due to the dust settling from the FTX collapse, which had nothing to do with Bitcoin other than FTX holding Bitcoin on its balance sheet. Analysts believe this correlation could represent a shift in the global economy, where Bitcoin is seen as a safe-haven asset and a viable alternative to gold.

The potential of Bitcoin as an alternative to gold is further evidenced by the market’s response to the FTX collapse. When the news broke, Bitcoin’s correlation with gold dropped significantly, highlighting its resilience and potential as a safe-haven asset. This resilience is further evidenced by the fact that Bitcoin has not been affected by the recent US-China tensions and the US election, both of which have had an impact on gold prices.

While it is possible that this correlation could be a short-term blip, it is worth noting that Bitcoin is increasingly being seen as a viable alternative to gold. With gold reaching its all-time high, Bitcoin could prove to be a more attractive option for investors who are looking for a safe-haven asset with more upside potential. As such, it will be interesting to see if this correlation continues over the coming months and years.