Bitcoin Price Correlation With Gold Nearly Doubled in Past 3 Months

The correlation between digital and physical gold has almost doubled in the past three months, fresh data from Bloomberg revealed on Aug. 7.

The statistics reveal that while the correlation between Bitcoin (BTC) and gold over the past year was at 0.496, in the past three months this has almost doubled to hit 0.837 — where a coefficient of +1 indicates perfect correlation, and -1 complete non-correlation.

58% lockstep since May

Bloomberg notes that over the past year, the correlation between the assets has been random: with the two assets trading inversely 49% of the time, in a correlated downturn 22% of the time and in a correlated uptrend 29% of the time. Yet since May 8 of this year, their trading in tandem has surged to 58%.

The article notes the caveat that 3 months is a relatively minor data set, as well as the fact that correlation does not imply causation. Moreover, its author argues that stablecoin Tether (USDT) — rather than purely market forces — has a significant…