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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.
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.
