📢 Bitcoin Turns Positive Year-to-Date as It Veers Toward Digital Gold Narrative
📢Bitcoin's strong correlation with gold continues as economic uncertainty grows.
📌 What to know:
♦️Bitcoin has a strong positive correlation of 0.70 with gold, distancing itself from tech stocks. It has a 0.53 correlation the with Nasdaq 100.
♦️The BTC price is approaching $95,000 after its best weekly performance since late 2024.
♦️Despite President Trump’s aggressive tariffs on China causing a slowdown in global cargo shipments, bitcoin continues to show resilience against broader economic instability.
🧿Bitcoin (BTC) returned to positive territory for the year for the first time in almost two months, approaching $95,000 and erasing a drop of as much as 18%.
📌 Its current performance, up less 1.5% since Dec. 31, places it between gold, which has gained 24% and the Nasdaq 100, which is down over 7%. As a result, the narrative positioning bitcoin as either a leveraged tech stock or digital gold is leaning slightly toward the digital gold narrative. But only just
♦️Analyzing bitcoin’s correlation coefficients over a 30-day moving average, the largest cryptocurrency by market capitalization now shows a strong correlation of 0.70 with gold and a weaker 0.53 correlation with the Nasdaq 100. This suggests bitcoin is aligning more closely with gold's behavior than with tech equities. Correlation values can run between 1, a strong positive correlation, and -1, a strong negative correlation.
📌 Meanwhile, Trump’s tariffs continue to feed economic uncertainty. U.S. levies on Chinese goods were raised to 145% earlier this month, leading to a significant drop in cargo shipment demand, according to Bloomberg. As noted in the report, major retailers like Walmart are warning that empty shelves and higher prices could return, reminiscent of the COVID era.
