Bitcoin Saw its Correlation with Gold Reach a 10-Month High Last Week
[ChainDD report] According to the report by The Block, per Bloomberg data, the premium of gold futures over the spot price of gold hit its highest level in decades. Despite suffering a 7% correction from its peak last Thursday as investors, the price of gold soon climbed this week after the Fed undertook a series of stimulus programs aimed at buttressing the U.S. economy.
On the other hand, Goldman Sachs contended that gold's comeback is somewhat expected in a March 23 research note sent to clients. A similar trend was observed during the 2008 financial crisis when gold first plunged by 20% then bounced back after the announcement of the Fed's $600 billion quantitative easing program.
Meanwhile, bitcoin also saw its correlation with gold reach a 10-month high last week.