The ‘Digital Gold’ Story Fails Bitcoin (Again)

The correlation between the two assets has fallen sharply recently.

Bitcoin is in a ‘non-digital gold’ period. pic.twitter.com/ka90HG8zmx

— Ki Jonge Ju (@ki_young_ju) February 24, 2026

When we take a closer look at the price development of bitcoin and gold, we can clearly see where this difference comes from. The correlation between the two was largely green between 2022 and mid-2024.

Then they broke out and entered red territory for the first time in years during and after the US presidential elections in late 2024. BTC skyrocketed to new highs, while gold lagged behind.

Once the precious metal started to catch up, the correlation rose to and above 0.5 in the third and early fourth quarters of 2025. But then the entire crypto landscape collapsed, while the precious metals market continued to boom.

Bitcoin experienced one of the most painful daily corrections on October 10 that changed the structure of the industry. In a 24-hour period, the entire market collapsed, leaving more than $19 billion in liquidations.

Since then, the asset has not only failed to recover to its previous highs, but has also continued to decline in value, down to $63,000 at the time of writing. In other words, it is 50% away from its peak.

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In contrast, the gold price reached a new all-time high at $5,600 in late January and, apart from the immediate and atypical crash to $4,400, has largely hovered around $5,000. It is now trading 30% above its October 10 price of $4,000, and its market cap is north of $36.1 trillion. This means that the difference between the two is approximately 30x in terms of market capitalization.