Bitcoin’s correlation with gold strengthens amid recessionary signals

Bitcoin’s correlation with gold strengthens amid recessionary signals

full version at cryptoslate

Quick Take

Following a disappointing US jobs report, which revealed an unemployment spike to 4.3% and the addition of just 114,000 jobs, the Sahm Rule has been triggered, according to Head of Investment Strategy Liz Thomas at SoFi.

Sahm Rule Recession Indicator: (Source: Head of Investment Strategy at SoFi, Liz Thomas)
Sahm Rule Recession Indicator: (Source: Head of Investment Strategy at SoFi, Liz Thomas)

Based on the unemployment rate, this indicator signals a recession is already underway if the unemployment rate, calculated using a three-month moving average, rises by half a percentage point from its lowest point in the past year.

Despite the bad jobs report, Bitcoin remains resilient and maintained a strong position at around $65,000 before US markets opened. Since it has fallen to around $63,700 as of press time. According to Newhedge data, Bitcoin’s 30-day rolling correlation with major equity indices QQQ and SPY is in negative territory. This decoupling suggests that Bitcoin is not following as steep a downward trend as US equities. Additionally, Bitcoin’s correlation with gold has increased to 0.32 from negative levels just a few weeks ago, indicating a stronger relationship with the traditional safe-haven asset.

Gold is also performing well, trending upwards by 1% on Aug. 1 and nearing the $2,500 per ounce mark.

BTC Correlations vs SPY, QQQ and GLD): (Source: Newhedge)
BTC Correlations vs SPY, QQQ, and GLD): (Source: Newhedge)

The post Bitcoin’s correlation with gold strengthens amid recessionary signals appeared first on CryptoSlate.

Recent conversions

0.23 ETH to NZD 0.099 ETH to BTC 0.0026 BTC to NZD 6700 THB to CHF 1500000 SHIB to CAD 1.7 BTC to NOK 0.00000500 BTC to EUR 0.6 BNB to CHF 135 ETH to BTC 0.2 SOL to GBP 500 DOP to ETH