Bitcoin and gold have recorded strong performance in 2023 amid geopolitical uncertainties and rising interest rates.
The correlation between Bitcoin (BTC) and gold has increased over 2023, as indicated by a recent report from asset manager Fidelity.
According to Fidelity’s analysis, Bitcoin’s price decoupled from its previously inverse relationship with interest rates and even rallied despite global rates increasing across the world — high interest rates tend to lower the demand for risk assets. Over the past twelve months, gold prices have followed the same pattern:
In 2023, gold experienced significant fluctuations, but overall showed strong performance against a number of currencies. Over the year, gold’s performance in U.S. dollars grew to 14.6%, with notable variations among different currency pairs. The asset performance was primarily driven by geopolitical risks and central banks’ demand. Bitcoin, meanwhile, gained 156% in 2023.
