The post Bitcoin’s Role as Digital Gold Questioned Amid Record Gold Prices and Market Correlations appeared on BitcoinEthereumNews.com.

As global economic tensions escalate, gold prices have surged to an unprecedented $3,317 per ounce, raising questions about Bitcoin’s safe-haven status. Despite recent price rebounds, Bitcoin experienced an 11.8% decline in Q1, leading analysts to explore its correlation with traditional tech stocks. Paybis CEO Innokenty Isers noted that Bitcoin’s low correlation with gold at 0.2 suggests a divergence in their market behaviors. Explore the latest developments in the crypto market as gold soars to new heights while Bitcoin struggles, challenging its ‘digital gold’ narrative. Is Bitcoin Akin to a Tech Stock? Analyst Weighs In Gold prices have reached an all-time high of $3,317 per ounce, a remarkable 25% increase since the start of the year. Analysts highlight that this surge reflects growing investor anxiety over the turbulent global economic climate, driven in part by escalatory trade wars among major economies. This backdrop has ignited discussions around Bitcoin’s performance and whether it can emulate gold’s upward trajectory or remain stifled by macroeconomic pressures. Bitcoin’s recent 11.8% decline in the first quarter has raised questions about its resilience as a hedge against traditional market downturns. “Bitcoin has closed the first quarter of 2025 with a significant decline and recent price fluctuations underscore its sensitivity to macro-economic factors,” stated Paybis Chief Executive Officer Innokenty Isers in an interview with COINOTAG. Isers argues that, for the time being, Bitcoin’s behavior closely resembles that of traditional equities. “Bitcoin’s correlation with equities—most notably with a 0.72 correlation to the S&P 500, challenges its status as ‘digital gold’ in the short term,” he added. Moreover, Isers points out that Bitcoin shows a low correlation with gold, currently at 0.2. This indicates significant divergence in the return profiles of these two asset classes. “Historically, Bitcoin’s correlation with gold has rarely surpassed 0.3, suggesting a limited co-movement between the…

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Filed under: News - @ April 16, 2025 5:20 pm