Bitcoin-Gold Convergence Reaches All-Time High

Faced with persistent inflation, geopolitical tensions, and unchecked money creation, investors are seeking solid refuges. Gold and bitcoin, long seen as opposites, now move in tandem. One is a millennial pillar, the other a digital outsider, but their curves converge at a historic level, reigniting the debate on bitcoin’s role as digital gold.

An unprecedented correlation between bitcoin and gold

In a message published this Tuesday on X (formerly Twitter), Ki Young Ju, CEO of CryptoQuant, revealed a strong signal: the correlation between bitcoin and gold now exceeds 0.85, a historically high level.

“Gold keeps hitting new all-time highs. The BTC-gold correlation is high; the digital gold narrative is still alive. Inflation hedge demand isn’t dead yet”, he stated.

Gold keeps hitting new ATHs.

BTC-Gold correlation is high; digital gold narrative still alive.

Inflation hedge demand isn’t dead yet. pic.twitter.com/mEL5CTtt9A

— Ki Young Ju (@ki_young_ju) October 14, 2025

By comparison, this correlation was negative at -0.8 in October 2021, illustrating a complete reversal of market dynamics. The previous record dated back to April 2023 with a peak of 0.9.

This convergence occurs within a context of rising precious metals, traditionally used as a hedge against macroeconomic instability. The latest data confirm this trend :

• Gold reached a historic high of $4,179.48 an ounce, with an annual performance of +57% ;

• The spot price settled at $4,128.49, while US December futures rose to $4,158 ;

• Silver saw even more marked gains, peaking at $53.60 before slightly retreating to $52.27 ;

• This surge is fueled by what several analysts call the “debasement trade”, a strategy aimed at protecting against currency devaluation caused by ongoing liquidity expansion policies.

The current strong correlation between bitcoin and gold therefore does not seem coincidental. It fits into a dynamic where investors, facing a loss of trust in fiat currencies, turn to assets perceived as durable refuges.

Towards an institutionalization of the digital gold thesis ?

This rise in correlation between bitcoin and gold is not just a cyclical phenomenon. Andrei Grachev, managing partner at DWF Labs, believes that this dynamic reflects an evolution in investors’ very perception of bitcoin: “capital naturally flows towards assets perceived as stable value stores”.

In other words, institutional actors no longer consider bitcoin solely as a speculative asset but begin to treat it with the same standards traditionally applied to gold.

Ben Elvidge, head of commercial applications at Trilitech, adds a strategic nuance to this shift: “this is explained by the fact that its potential for capital gain has overtaken its ease of use as a means of payment”. He believes that the potential for capital appreciation currently outweighs its function as a payment method. This comment highlights a subtle transition.

Bitcoin seems to be gradually abandoning its transactional vocation to adopt a more passive role as a reserve, akin to the yellow metal after the end of the gold standard, whose rush could well herald the golden age of the crypto queen.