Bitcoin’s correlation with gold has dropped to 0.9, its lowest level in 3 years.
Analyst Wise Crypto points out that similar patterns have historically occurred just before significant drops in Bitcoin’s price, suggesting a potential turnaround could be starting.
Correlation Breakdown
As a researcher, I’ve been following the recent market trends, and Wise Crypto’s data, shared on X on March 24th, suggests an interesting shift. Bitcoin appears to be stabilizing, while gold is currently losing some ground. They noted the ratio of Bitcoin to gold has fallen roughly 70% from its peak. Historically, this kind of situation – Bitcoin stabilizing as gold weakens – has often signaled the end of a Bitcoin downturn and the beginning of a recovery.
We’ve also seen a significant increase in buying from large cryptocurrency holders, often called ‘whales,’ which suggests they are building their positions at these current prices.
Wise Crypto also noted that recent global events are helping to explain why Bitcoin is performing as it is compared to more traditional investments.
They suggested that if you consider broader economic factors and global stability, the argument for Bitcoin hitting its lowest price point gets stronger, and it’s possible Bitcoin has already reached that bottom.
As we noted before, the cryptocurrency rose by 7% when tensions between the U.S. and Iran increased on February 28th. Meanwhile, gold prices decreased by 2% and the Nasdaq 100 experienced a small drop.
Despite significant price fluctuations throughout the day caused by breaking news, Bitcoin showed relative strength. Yesterday highlighted how sensitive BTC is to these events. Initially, the price rose to around $71,500 following comments from U.S. President Donald Trump suggesting a potential de-escalation between the U.S. and Iran. However, Iran quickly refuted these claims, causing Bitcoin to fall back to around $70,000 and resulting in over $800 million in liquidations.
Gold prices continued to fall sharply, officially entering a bear market after losing nearly 10% of their value last week – the worst weekly performance since September 2011. This decline means gold is now more than 20% below its peak price of around $5,600 reached in January.
As Wise Crypto noted,
“If history rhymes, BTC could be gearing up to outperform gold next.”
Easing Short-Term Selling Pressure
As of today, Bitcoin is trading around $71,000. I’ve observed a gain of over 3% in the last 24 hours, but looking at the bigger picture, it’s down about 5% over the past week. However, with nearly a 4% increase over the last month, it seems like Bitcoin might be stabilizing rather than entering a sustained decline.
According to CryptoQuant contributor Amr Taha, selling pressure on Binance has decreased recently. He notes that the fluctuation in profits and losses for short-term Bitcoin holders has fallen to a level not seen before recent price increases of 10% to 14%. A similar pattern occurred in late February, preceding a Bitcoin price rise from approximately $66,000 to over $75,000.
The recent decrease in market swings indicates that quick selling by day traders is slowing down. While current trading still leans towards losses, the overall market pressure is becoming more predictable, a pattern that has historically coincided with more stable prices.
Read More
- 20 Movies Where the Black Villain Was Secretly the Most Popular Character
- Top 20 Dinosaur Movies, Ranked
- Silver Rate Forecast
- Can AI Lie with a Picture? Detecting Deception in Multimodal Models
- 25 “Woke” Films That Used Black Trauma to Humanize White Leads
- 22 Films Where the White Protagonist Is Canonically the Sidekick to a Black Lead
- Top 10 Coolest Things About Invincible (Mark Grayson)
- When AI Teams Cheat: Lessons from Human Collusion
- From Bids to Best Policies: Smarter Auto-Bidding with Generative AI
- Unmasking falsehoods: A New Approach to AI Truthfulness
2026-03-24 11:11