Bitcoin’s Correlation With Gold Is Weakening
A drop in Bitcoin trading resulted in a six-month low of Bitcoin’s annualized volatility. Though Bitcoin’s (BTC) correlation with gold has diminished, the asset’s correlation with the S&P 500 stock market index is on the rise, researchers from Kraken exchange found.
Kraken Intelligence, a research arm of major United States cryptocurrency exchange, Kraken, released a “Bitcoin Volatility Report” for June 2020.
Bitcoin’s volatility hits a 6-month low
Published on July 9, the new report outlines a 31% drop in Bitcoin trading that resulted in a six-month low of Bitcoin’s annualized volatility, which accounted for 51% in June.
According to the report, the significant decline in volumes and volatility marked June as the quietest month since February 2020 for Bitcoin. This also caused a major trend reversal that greatly impacted Bitcoin’s correlation with stocks and gold.
BTC correlation with gold drops 0.73 from average indicators in June
As such, Bitcoin’s 30-day rolling correlation with gold plunged below its one-year average of 0.24 to hit a four-month low of -0.49, the researchers found. The correlation move followed a modestly positive trend in the second half of May that ended above a one-year average of 0.50, Kraken Intelligence noted.
Correlation with S&P 500 is growing
While Bitcoin is becoming less correlated with gold, the cryptocurrency’s correlation with stock market indexes like S&P 500 is growing. According to Kraken Intelligence, the reversal trend caused Bitcoin’s correlation with S&P 500 to climb to as high as 0.65 in late June. The monthly average surged at 0.52 from a one-year average of 0.26, the analysts noted.
Kraken’s data on S&P 500 correlation appears to coincide with information shared by digital asset exchange, OKCoin, earlier this week. Daniel Koehler, liquidity manager at OKCoin, told Cointelegraph that the exchange witnessed “high” levels of BTC and S&P 500 one-month realized correlation. “The last time we saw SPX and BTC 1M realized volatility spread this low was just prior to the March 12th BTC price crash,” Koehler added.
Earlier in June, stock-to-flow analyst PlanB claimed that a heavy correlation between Bitcoin and S&P 500 should have sent Bitcoin’s price to $18,000.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 80.4% | 27 | $64 155.50 | 2.73% | -5.06% | $1 263 066 455 009 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 78% | 45 | $3 062.08 | 2.00% | -6.04% | $367 670 741 455 |  |
|
| 3 |  USDT |
Tether predictions | 92.4% | 1 | $1.000437 | -0.01% | 0.02% | $109 517 365 626 |  |
|
| 4 |  BNB |
Binance Coin predictions | 85.6% | 18 | $559.80 | 2.68% | -5.64% | $83 709 375 883 |  |
|
| 5 |  SOL |
Solana predictions | 71.2% | 51 | $144.14 | 3.48% | -6.58% | $64 402 586 048 |  |
|
| 6 |  USDC |
USD Coin predictions | 91.6% | 2 | $1.000003 | -0.01% | 0% | $33 903 068 496 |  |
|
| 7 |  XRP |
XRP predictions | 68.4% | 58 | $0.512182 | 4.63% | -6.51% | $28 236 143 262 |  |
|
| 8 |  DOGE |
Dogecoin predictions | 70.4% | 60 | $0.156630 | 5.33% | -10.03% | $22 548 280 909 |  |
|
| 9 |  TON |
Toncoin predictions | 66.4% | 64 | $6.11 | -9.85% | -10.45% | $21 207 802 773 |  |
|
| 10 |  ADA |
Cardano predictions | 72% | 60 | $0.482345 | 7.87% | -5.22% | $17 183 386 742 |  |
|
| 11 |  SHIB |
SHIBA INU predictions | 58.4% | 85 | $0.000023 | 5.13% | -5.50% | $13 666 465 959 |  |
|
| 12 |  AVAX |
Avalanche predictions | 68% | 60 | $35.77 | 5.13% | -7.82% | $13 520 909 779 |  |
|
| 13 |  STETH |
Lido stETH predictions | 90.8% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 14 |  WBTC |
Wrapped Bitcoin predictions | 81.2% | 31 | $64 102.16 | 2.66% | -5.19% | $9 960 432 922 |  |
|
| 15 |  DOT |
Polkadot predictions | 70% | 57 | $6.77 | 3.06% | -6.72% | $9 724 497 698 |  |
