Here's an interesting observation — the correlation between Bitcoin and gold has dropped to a four-year low. Currently, it’s at around -0.7, which is quite rare. It turns out these two assets have diverged completely in different directions.

Looking at the last six months — since September of last year — the picture becomes even more strange. Bitcoin has fallen more than 41%, while gold has risen 48% over the same period. Such a disparity in dynamics definitely affects how they correlate with each other. A lot has been said about Bitcoin as “digital gold,” but now that idea seems questionable.

Although it’s interesting that despite all these difficulties, some serious financial organizations like Emirates NBD still view Bitcoin in this light. Their chief investment officer, Maurice Grawé, hinted that they are considering adding it to their portfolio. Maybe they see something that others have missed.

By the way, a well-known market analyst, Michael van de Poppe, pointed out that Bitcoin’s relative strength index compared to gold is at historically low levels. This could mean that a recovery of the correlation is possible, but when that will happen remains an open question. For now, one thing is clear — the correlation between these assets has changed dramatically.