Bitcoin and Gold correlation suddenly shifts

Bitcoin down about 6.3%, gold up 1.2%

The euphoria of gold and the bitcoin bulls have been finding common ground over the last two months. The combination of slowing growth, low interest rates and trade fears supported both assets.

In general, they moved together – although the larger movements were at BTC.

Recently, however, we have seen divergence in this correlation and today it is palpable, with both assets making large movements, but in the opposite direction.

Gold settled near the 6-year high. Bitcoin, in contrast, consolidates between $ 9K and $ 14K.

I think if the global risks continue, then gold is the right betting horse. Most probably the same applies to bitcoin, but the decrease from the last two days makes me less sure.

Chart: Used with permission from Bloomberg Finance L.P.

 Trader Aleksandar Kumanov

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