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Tradeblock Research Finds that Bitcoin-Gold Negative Correlation Has Intensified

Back in August 2015, the research team of Tradeblock, a provider of execution and analysis tools in the cryptocurrency sector, found a significant inverse correlation between bitcoin and gold prices. They noted back then that “the historical positive correlation with gold has turned decisively negative, and currently stands at -0.58.”

Tradeblock decided to conduct more analysis on data up to the present day, and found that the gold-bitcoin inverse relationship intensified. They determined that “the trailing 12-month correlation coefficient now stands at -0.70”, which is the one of the highest of all financial assets in their analysis. That inverse relationship is fairly in the following chart:
TradeblocckpXBT-Gold

Tradeblock also increased the list of assets in the analysis, adding global currencies, CNY, EUR & GBP, to existing equities and Treasury securities over the same 12-month period. Apparently, the Chinese Offshore Yuan (in USD terms) showed the strongest correlation to bitcoin with a coefficient of +0.72.

Tradeblock-XBT-CNY_2

The research team also noted that was no correlation betweem the price of bitcoin and the VIX Index, a measure of the implied volatility of S&P 500 options, and equity indices in both China and the US.

Journalist, policy analyst, and evangelist of new, disruptive technologies including big data analytics, Internet of Things, and cryptocurrencies. Internet industry veteran with regional c-suite experience, and journalist credentials earned at internet.com, Internet World magazine, and Mecklermedia Corporation.
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