Gold-Bitcoin price decoupling likely to deepen, says Matrixport

Cryptocurrency services provider Matrixport said in a report that the price decoupling between Bitcoin and gold could continue for some time. The report noted that while the market anticipates the U.S. Federal Reserve will cut interest rates this December, the overall scope of monetary easing is expected to remain limited. Matrixport explained that gold has a higher correlation with the U.S. fiscal deficit and the pace of Treasury bond issuance compared to Bitcoin. Meanwhile, Bitcoin is more dependent on new capital inflows, and there are currently no clear signs of significant additional liquidity entering the market. In this environment, the correlation between Bitcoin and gold prices is highly likely to weaken further, the firm concluded.