Bitcoin-Gold Correlation Back in Action! Will Bitcoin Surpass $100,000? Here Are the Details

Bitcoin (BTC) has returned to positive territory, approaching $95,000 and erasing nearly two months of losses, as the cryptocurrency continues to align more closely with gold amid heightened economic uncertainty.

Bitcoin Paints Positive Outlook for 2025 as It Moves Towards a “Digital Gold” Narrative

Bitcoin, which fell as much as 18% earlier in the year, has gained about 1.5% since Dec. 31. Its performance ranks between gold, which has gained 24% since the beginning of the year, and the Nasdaq 100, which has lost more than 7%.

As a result, Bitcoin’s perception is shifting slightly away from being a speculative tech asset and more towards being seen as digital gold, but the nuances of this transition remain.

According to correlation data analyzed against the 30-day moving average, Bitcoin currently shows a strong correlation of 0.70 with gold, while its correlation with the Nasdaq 100 has dropped to 0.53.

Correlation coefficients range from 1 (perfect positive correlation) to -1 (perfect negative correlation), and Bitcoin's current data suggests it behaves more like a safe-haven asset than a high-beta tech stock.

Meanwhile, global uncertainty is rising. Earlier this month, the U.S. raised tariffs on Chinese goods to 145%. The move has led to fewer cargo shipments and major retailers like Walmart warning of possible shortages and price hikes, Bloomberg reported. It’s reminiscent of the early days of the COVID-19 pandemic.

The strengthening link between bitcoin and gold comes at a time when investors are increasingly looking for assets that can withstand inflationary pressures and geopolitical tensions. As bitcoin approaches new highs, its evolving story could continue to attract the attention of both traditional finance and crypto investors.

*This is not investment advice.