-
Spot gold fell below $4,000 an ounce on Friday for the first time since mid-July and was down 4% on the week, its worst week since June, Reuters reported.
-
Bitcoin traded near $81,500, up about 0.3% over seven days, as Brent crude rose to about $116 and US selling prices rose at their fastest pace since August 2022.
-
Glassnode says Bitcoin’s gold correlation will show whether investors treat it as a hard asset only once the August squeeze leaves its 90-day window.
Bitcoin traded near $81,500, up about 0.3% over seven days, CoinMarketCap data show, while gold lost 4%. Glassnode treats Bitcoin’s correlation with gold as its test of whether investors hold Bitcoin as a hard asset. On price, Material Indicators cofounder Keith Alan is watching for a test of $78,000 to $80,000 if Bitcoin fails to retake its 50-day average.
“Heightened inflation concerns suggest that major central banks of the world won’t be able to ease monetary policies as quickly as they want to. All that’s working against the gold and silver market bulls at present,” Jim Wyckoff, a market analyst at American Gold Exchange, told Reuters.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the pace “indicates consumer price inflation is likely to rise further above the Fed’s target in the coming months.”
That changed in August. The gold reading peaked on Sept. 11 at its highest since the data begin in March 2018. It has stayed close to that level since, the report said.
A correlation measures how closely two prices move together, here across 90 days. That window still holds August’s squeeze, when Bitcoin rose 25% in a week alongside gold.
By CoinMarketCap’s count, the squeeze drops out of that window in November.
Glassnode’s report draws a lower line at $77,500, an average cost weighted toward coins that still move. Holding it keeps Bitcoin in its bull phase, the report said.
The Fed decides on rates Oct. 28, and its preferred inflation gauge follows on Oct. 29.
“If the gold correlation stays above its 2025 average once the squeeze drops out of the window, investors are treating Bitcoin as a hard asset,” Glassnode and Fasanara wrote.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s (company’s) own and do not necessarily reflect those of CoinMarketCap.