The CEO of analytics firm CryptoQuant asserts Bitcoin is not in a ‘digital gold’ period due to a significant divergence in correlation. The correlation between the two assets, which was positive from 2022 to mid-2024, turned negative around the 2024 U.S. elections. Bitcoin surged to new highs while gold lagged, with the correlation briefly recovering in late 2025 before collapsing again during a major crypto market downturn in October.
The correlation between Bitcoin and gold has fallen hard recently, according to CryptoQuant CEO Ki Young Ju. *”Bitcoin is in a ‘not digital gold’ period,”* he stated based on this divergence.
Historical data shows the correlation was mostly positive between 2022 and mid-2024. It then broke into negative territory during and after the 2024 U.S. presidential elections.
During that period, Bitcoin’s price skyrocketed to new peaks as gold trailed behind. The correlation later jumped above 0.5 by the third and early fourth quarters of 2025.
The entire crypto landscape then broke as the precious metal market blossomed. Bitcoin experienced one of its most painful daily corrections on October 10, 2025.
That event led to a market collapse with over $19 billion in liquidations. Bitcoin has since declined to approximately $63,000, sitting 50% below its all-time high.
In contrast, gold tapped a new all-time high of $5,600 at the end of January 2026. It briefly crashed to $4,400 but has mostly traded at or above $5,000.
Gold currently trades 30% above its October 10 price of $4,000. Its market capitalization now exceeds $36.1 trillion, roughly 30 times larger than Bitcoin’s.
