BTC-Gold Correlation Weakens as Investors Turn Risk-Averse
CryptoNewsTerminal Staff13 Sep, 2024
BTC-Gold Correlation Weakens as Investors Turn Risk-Averse
CryptoQuant's weekly report unveils a weakening correlation between Bitcoin (BTC) and gold, signaling investors' risk-averse tendencies. This shift occurs as gold prices surge amid falling BTC prices. According to the report, CryptoQuant's Bull-Bear Market Cycle Indicator has been in a bearish phase since August when BTC traded at $62,000. Moreover, the on-chain indicator MVRV, employed to identify market cycles, has fallen below its 365-day moving average (MA) since August 26th. This indicates a decline in profits for long-term holders (LTHs) of BTC. Under these circumstances, BTC has mirrored the bearish trend of the US stock market. The report suggests that investors are seeking safer havens, such as gold, due to heightened economic uncertainty.
