Global financial markets are experiencing moments of volatility, and in this context Bitcoin (BTC) has recovered gold and sync.
According to Pearson’s correlation coefficient, The prices of both assets have started to move in parallel againshows low correlation with key market shares, such as the Nasdaq Composite and the S&P 500 Index.
This action suggests a shift in perceptions of investors who see shelters comparable to precious metals in digital currency, but not assets in line with the stock market.
Driven by escalations of economic uncertainty and commercial tensions, the movement reaffirms that Bitcoin can be integrated as “digital gold.”
Rebound correlation
Pearson’s correlation index is a statistical measure that assesses the linear relationship between two variables, indicating that Bitcoin and Gold have resumed their joint trajectory.
The scale occurs between -1 and 1. The closer to 1, the greater the correlation between assets, whereas -1 reflects opposing behavior in the market and is also known as negative correlation. Instead, it shows that there is little correlation.
Friday, April 25th, The 30-day Pearson correlation between both assets reached 0.54, approaching a maximum of 0.73 per year. This rebound contrasts with the sudden cleavage observed in February when the correlation fell from 0.73 to -0.67 in just three weeks, according to data from CryptoCompare.
On the contrary, Pearson’s indicators reveal that Bitcoin has a significantly lower correlation with the NASDAQ Composite and the S&P 500 stock market. Bitcoin prices are highly correlated with gold, but their relationship with these behaviors is weak, indicating that BTC movements do not follow stock market trends. This difference strengthens the recognition of Bitcoin as an asset closer to gold than traditional behaviour.
At the beginning of February, Bitcoin had cited about $102,000, while ounces of gold were $2,800.
However, at the end of the month, BTC prices fell by 17%, at $84,000, while gold rose slightly to $2,850, almost 2%. This difference indicated a temporary break in the relationship between both assets..
However, since March, the correlation has experienced a significant recovery from -0.67 to 0.59. This change coincides with a scenario of global economic uncertaintyunleashed by the escalation of commercial tensions.
Commercial tension as a catalyst
The US-led commercial conflict has played a central role in this scenario.
In early April, President Donald Trump announced a mutual tariff system on imports from more than 60 countries.
The move has sparked a wave of uncertainty in financial markets and an immediate response, particularly in China’s commercial partners.
On April 9, Trump gave him a 90-day break in most countries except China, negotiating trade agreements and giving him a term until July 2025 to avoid more serious tariffs.
The Trump administration has stepped up pressure on China. Impact customs duties of up to 245% on Chinese imports In response to Beijing’s retaliation measures. This level includes progressive increases. The first 104% tariffs in April rose to 145% and ultimately reached 245%.
In response, China has raised tariffs on US products to up to 125%applies to all imports from the US. This level was achieved after an increase of 34% to 84% in April and then 125%.
Meanwhile, China has increased its overseas anvils to strengthen its Yuan, a preparatory signal for the potential for increased economic turbulence.
Bitcoin resists and dollars fall
In this context of uncertainty, Bitcoin demonstrates resilience. After Trump’s announcement, he was baptized as “the day of liberation,” the price of BTC shot over 10%.
Digital Currency It reached around $85,000 to $95,000 due to stability. This remains as resistance..
On that side, Gold wasn’t too late. The 5% rise marked a historic maximum of $3,500 per ounce last week.
Taking into account the actions of money, which have historically served as shelter in times of uncertainty, Bitcoin alignment with this asset suggests a panorama that is beneficial to digital currency.
The strength of gold in the market strengthens the recognition of Bitcoin as a value reserve that drives its appeal among investors.
On the contrary, the US dollar index lost around 4% since the beginning of April. The previous currency value of the main foot (DXY) currency has been reached at 97 points. Last week, it was the lowest in three years. This will enhance Bitcoin’s appeal and gold as a valuable reserve.
Bitcoin ETF is Rise and Investing Trust
This perception is reflected in capital movements. The investment fund in digital assets, including Bitcoin, was a $3.4 billion registered ticket last week, the third largest entry in history, and the most important ticket since December 2024, as reported by encryption.
For Bitcoin investment products, they attracted $318 million last week, transporting managed assets to $1320 million.
Bitcoin Listed Funds (ETFs) serve as market trust thermometers. Managers of these products have accumulated a large amount of currencies to support their offers, creating bullish pressure at the price of BTC.
This massive capital flow, driven by commercial tensions and weakness in the dollar, illustrates a shift in the mentality of big investors who see the tools to navigate economic uncertainty in Bitcoin.
In addition, Comparison with gold as “digital gold” gains strength. Historically, both assets have been considered shelters for volatilityand recent price alignment enhances this story.
Investors who fear uncertainty have allocated important resources to Bitcoin, which could consolidate the upward trend.
(tagstotranslate)Bitcoin (BTC)
