As it happens, last week the correlation of Bitcoin with gold reached its highest level in more than a year, crypto market analytics platform Kaiko Data stated in its data debrief published on October 3.
Outside factors affecting prices
According to the authors of the debrief, both the flagship digital asset and the precious metal have suffered significant declines this year: On top of that, “gold has failed to act as a safe-haven asset i.e. an asset that is expected to retain or gain in value during periods of economic downturn,” in spite of “core inflation remaining persistently high.”
Bitcoin and gold vs. dollar
Although the correlation between the two commodities had been minor for the most part of the year, the platform explained that the strengthening of the dollar is now negatively affecting both, increasing the correlation between the two as a result:
Bitcoin price analysis
At press time, Bitcoin was trading at $19,917, up 3.84% on the day at the same time as the global crypto market capitalization has grown by 3.05%. That said, the BTC price is still down 1.25% compared to the previous seven days. As things stand, the market cap of the largest cryptocurrency by this indicator at the time of publication stood at $381.79 billion, as per CoinMarketCap data. At the same time, some analysts are predicting bullish momentum for Bitcoin, provided it breaks the resistance area of $20,100 – $20,340, while the supply of BTC on exchanges has dropped to a four-year low. Others have noted historically poor Bitcoin performance during October’s bear markets in previous years, wondering whether this signals the same for October 2022, as Finbold earlier reported. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
