Bitcoin’s correlation with gold has been steadily increasing, reaching its highest level since March 2024.
This growing connection highlights Bitcoin’s evolving role as a hedge against macroeconomic uncertainty, particularly in times of recession fears and diminishing confidence in the U.S. dollar. Investors seeking a “safe haven” are turning to Bitcoin, much like gold, to protect their assets from market volatility.
In contrast, Ethereum’s correlation with gold remains minimal and relatively insignificant. Unlike Bitcoin, Ethereum operates more as a speculative asset, driven by growth and innovation within its ecosystem. Its price is more influenced by factors like decentralized finance (DeFi) activity and staking, rather than external economic trends. This positions Ethereum as a more dynamic, but less stable, asset compared to Bitcoin.
Bitcoin's correlation with gold has been on a rising trend, now reaching its highest level since March.
In contrast, $ETH's correlation with gold remains minimal and largely insignificant.
Key Takeaways👇
🟠 Bitcoin’s rising correlation over the past months aligns with… pic.twitter.com/fGstlFiAT6
— IntoTheBlock (@intotheblock) September 24, 2024
Recent market data reinforces these trends. On September 23, the net outflow from Ethereum spot ETFs totaled $79.2 million. Grayscale’s ETHE alone saw outflows of $80.55 million, while Bitwise’s ETHW ETF had a modest single-day inflow of $1.34 million. These movements reflect varying market sentiment toward Ethereum as opposed to the growing favor Bitcoin is finding among those seeking protection against broader economic instability.
On September 23, the total net outflow of Ethereum spot ETFs was $79.2097 million. Grayscale ETF ETHE had an outflow of $80.5542 million, and Bitwise ETF ETHW had a single-day inflow of $1.3445 million. https://t.co/Tvs2oCS03I
— Wu Blockchain (@WuBlockchain) September 24, 2024
As Bitcoin strengthens its position as a macroeconomic hedge, its rising correlation with gold could further solidify its status as “digital gold.” Meanwhile, Ethereum’s speculative, ecosystem-driven nature means its future will be shaped by developments within its platform, rather than external financial markets. The divergence between the two assets highlights the distinct roles they are beginning to play in the broader cryptocurrency landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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