Bitcoin-Gold Yearly Correlation Level Shifts as USD Strengthens

• A market tracker published that the BTC-Gold correlation has shited due to USD.
• Kaiko claims that Gold lost all of its value due to the protracted Russia-Ukrain war.
• The crypto markets outperformed traditional assets in the year’s third quarter.

According to a blog post by Kaiko, an institutional-grade crypto market tracker, the correlation between Bitcoin (BTC) and Gold has shifted as the US Dollar continues strengthening, negatively impacting both assets.

Previously, the correlation between BTC and gold over the past year has predominantly fluctuated between negative 0.2 and positive 0.2. it, however,  changed as the US Dollar grew.

Kaiko claims that Gold lost all of its value in the first quarter of the year due to the protracted Russia-Ukrain war, putting it down by 10% year-to-date. It also pointed to the tightening of monetary policies worldwide as a contributing factor. The market tracker also believes Gold has not served as a safe-haven asset expected to keep value during times of economic crisis.

On the other hand, the crypto markets outperformed traditional assets in the year’s third quarter despite the post-Merge September sell-off. The report said activities on Bitfinex and Bitstamp, two of the nine monitored exchanges, drove BTC-GBP pairs’ trading volume to record highs last month. Notably, September 26th saw a total daily BTC-GBP volume of 42k BTC on Bitfinex, equivalent to £747k, more than four times the previous most significant volume day value.

Additionally, a few crypto exchanges’ volumes of fiat trading services increased on the 26th, including Kraken, Bitstamp, and FTX, reaching record highs and remaining so over the weekend.

Last week’s Coin Edition report highlighted that major cryptocurrencies outperformed the stock market indexes. Under a seven-day scale, the tech-heavy Nasdaq and the S&P 500 Index lost more than 4%, while BTC and Ethereum (ETH) respectively regained 2% and 4% in the same period.

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