Bitcoin follows gold as both rise to highest values since August

Bitcoin follows gold as both rise to highest values since August

October 21, 2023

By Abiodun Oladokun

How much are 1,10,100 BTCs worth today?

On 19 October, the prices of Bitcoin and gold surged to a two-month high.

BTC’s fund market premium showed increased activity from institutional investors since the month started.

Bitcoin [BTC] and gold climbed to their highest values since August during the intraday trading session on 19 October, with BTC climbing above $28,000 and gold rallying past $1,950.

An assessment of the 30-day correlation coefficient between BTC and gold showed a significant surge in the correlation between the two assets in the last week.

Whenever this happens, it means that the prices of the two assets are moving in sync. At press time, this correlation stood at 0.04, growing by over 100% in the last seven days, according to data from IntoTheBlock.

Source: IntoTheBlock

Institutional investors taking a peek at BTC

A notable cause of a surge in correlation between gold and BTC is an increase in institutional investments.

An assessment of BTC’s Fund market premium metric revealed an uptick in institutional investor eagerness over the last week to put their money in investment assets (BTC trust) that derive their price from the coin’s price movements.

Fund market premium refers to the difference between the market price of a fund and its Net Asset Value (NAV). A Fund market premium can occur when investors are willing to pay more for a fund than its NAV.

This could be due to several factors, such as the fund’s performance, investment strategy, or overall market sentiment.

In the last week, BTC’s Fund market premium has increased by over 10%, according to data from CryptoQuant.