Bitcoin’s correlation to gold and silver has reached cyclical lows, according to Glassnode.

According to Glassnode, data shows that the correlation between Bitcoin and Gold and Silver has recently reached cyclical lows.

Bitcoin Correlation With Gold & Silver Has Now Turned Negative

According to data from Glassnode, the recent price movement of BTC has caused the cryptocurrency to become decoupled from commodities such as Gold and Silver.

The “correlation” here is an indicator that shows how closely Bitcoin has been moving with a particular asset over a given time period. In this discussion, the 30-day time period is of interest.

When the correlation value is positive, it means that the cryptocurrency is following the movements of the other asset. On the other hand, negative values suggest that BTC has been moving in the opposite direction to the commodity’s price.

Generally, the higher the value of the metric (positive or negative), the stronger the response of Bitcoin to movements in the asset in question.

The correlation can also reach a value of zero during periods where there is no discernible pattern between the prices of the two assets (such as when one asset moves sideways while the other experiences volatility).

Now, here is a chart showing the trend in the 30-day correlation between Bitcoin and Gold and Silver over the past few years:

It appears that the correlation value has recently dropped | Source: Glassnode on Twitter

As shown in the graph above, the 30-day correlation between Bitcoin and both Gold and Silver was high until recently, but with the latest surge in the cryptocurrency, the indicator’s value has significantly decreased.

Following this decrease, the metric’s value has entered negative territory for both assets, with BTC’s correlation to XAU (the price of one troy ounce of Gold) reaching -0.78, and its correlation to XAG (one ounce of Silver) going even lower to -0.90.

For Gold, the correlation between the two assets is now close to cyclical lows, while for Silver, the indicator has already reached a new cyclical low with this drop.

Bitcoin currently shows a highly negative correlation to these commodities due to the fact that their prices have been decreasing, while the cryptocurrency has experienced a significant rally at the same time.

The current values of the 30-day correlation indicate an interesting shift in trend, as Bitcoin had been closely moving in line with these traditional assets since the rally began in January of this year, except for a period between late February and early March.

It remains to be seen whether Bitcoin will continue to be decoupled from these assets in the coming days and follow its own path, or if the break in correlation is only temporary, as seen earlier this year.

BTC Price

At the time of writing, Bitcoin is trading around $30,200, up 5% in the last week.

BTC has not experienced much movement in the past few days | Source: BTCUSD on TradingView