Bitcoin vs. Gold: Does October’s near zero correlation shatter ‘digital gold’ myth?

In October, Bitcoin and gold exhibited divergent price movements, with gold climbing about 10% while Bitcoin slipped roughly 6%, resulting in a near-zero correlation of 0.1. This challenges the common narrative that they move inversely as a 'risk-on vs. safe haven' trade. Data shows that when gold experienced its major drop, Bitcoin had already recovered previous losses, indicating a temporal misalignment rather than an inverse trade. Gold reacted to traditional macro factors like rates and liquidity, while Bitcoin's movements were driven more by positioning and leverage, hitting its short-term pain point earlier. The analysis concludes that while both assets might align under a shared inflation narrative over longer periods, their short-term drivers are distinct—gold trades in macro time, and Bitcoin trades in positioning time—meaning the 'digital gold' proxy is often chronologically decoupled.

(Source：CryptoSlate)