$BTC Bitcoin Quickly Recovered Its Correlation with Gold

According to Pearson's correlation, the prices of bitcoin and gold have begun to move in tandem again. Source: Grok.

Considering the behavior of gold, this is positive for bitcoin (BTC).

More and more, investors are understanding that bitcoin is a kind of "digital gold".

The global financial market is going through a period of high volatility and in this context, bitcoin (BTC) has regained its synchronization with gold.

According to the Pearson correlation coefficient, the prices of both assets have started to move in parallel again, while showing a low correlation with major market stocks, such as the Nasdaq Composite and S&P 500 indices.

This behavior suggests a shift in investor perception, who see in the digital currency a store of value comparable to the precious metal, but not an asset aligned with the stock market.

The movement, driven by economic uncertainty and an escalation in trade tensions, reaffirms that bitcoin can consolidate as the "digital gold".

A Surge in Correlation

The Pearson correlation indicator, a statistical measure that evaluates the linear relationship between two variables, shows that bitcoin and gold have resumed a joint trajectory.

The measure ranges from -1 to 1. The closer to 1, the greater the correlation between the assets, while -1 reflects opposing behaviors in the market, also known as negative correlation. Conversely, 0 indicates that there is little correlation.

On Friday, April 25, the 30-day Pearson correlation between both assets reached 0.54, approaching the annual high of 0.73. This surge contrasts with the abrupt disconnection observed in February, when the correlation fell from 0.73 to -0.67 in just three weeks, according to data from CryptoCompare.