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The Fed made the expected 25bps hike, both gold and Bitcoin surged on the news – highest correlation in 6 months

Bitcoin and Gold now have a 97% correlation in the last 6 months, in light of the expected 25bps Fed interest hike.

James Van Straten
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James Van Straten
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Quick Take

  • On Feb. 1, the Fed hiked an expected 25bps — taking the fed funds target to a range of 4.5% to 4.75%.
  • Chair Powell acknowledged that inflation had “eased somewhat.” However, it remains “elevated,” and “the committee anticipates that ongoing increases in the target range will be appropriate.”
  • Bitcoin and Gold surged on the news — Bitcoin broke $24,000 while Gold sits above $1,950.
  • Bitcoin and Gold have a 97% correlation with one another — the highest in 6 months.
Bitcoin/Gold: (Source: TradingView)
Bitcoin/Gold: (Source: TradingView)
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Bitcoin Jerome Powell
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James Van Straten
James Van Straten
Former Lead Analyst CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

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