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

The Fed made the expected 25bps hike, both gold and Bitcoin surged on the news โ€“ 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.

Quick Take

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