I noticed an interesting thing — the correlation between Bitcoin and gold has dropped to a level not seen in four years. A minus 0.7 is a significant divergence. Over the past few months, Bitcoin has plunged by more than 40%, while gold, on the other hand, has grown by almost half. That’s the kind of different dynamics that have resulted.

Previously, everyone said that Bitcoin is digital gold, but this correlation clearly shows that they’re moving in completely different directions. Interestingly, some serious financial institutions, such as Emirates NBD, still see potential in it as an alternative asset. Their investment director, Maurice Gravuer, even talked about the possibility of adding Bitcoin to the portfolio.

Michael van de Poppe points out that the relative strength index of Bitcoin versus gold is at historic lows. This could mean that the correlation between these assets might eventually recover, but when exactly — no one knows. For now, they’re clearly going their own ways.