Correlation is measured on a -1 to 1 scale, where -1 means the prices always move in opposite directions and 1 means they are in perfect synchronization.
In August 2020, BTC-to-gold hit an all-time high, though the pair has historically fluctuated between positive and negative correlations, providing little guidance to market speculators.
The price of gold has traveled from $1,805 per ounce at the beginning of 2022 to $1,952 today, per data from Monex; it’s remained roughly static over the past month.
Consumer Price Index, published by the Bureau of Labor Statistics, put annual inflation at 8.5%—the highest it’s been since Ronald Reagan’s first term.
No surprise that that’s almost the same as Bitcoin, which has lost nearly 12% of its value.