Bitcoin advanced on Monday, ending a 10-day-long price consolidation, as the U.S. dollar weakened against gold and fiat currencies.
- The number one cryptocurrency by market value printed a high of $10,691 at 14:05 UTC, the highest level since Sept. 4, according to CoinDesk’s Bitcoin Price Index.
- The bulls finally led the price action, having shown little interest in the preceding 10 days when the cryptocurrency was stuck in a narrow range of $10,000 to $10,500.
- On-chain metrics kept improving despite the price pullback from $12,000 to $10,00 earlier this month. Many expected a breakout.
- While bitcoin gained over 3%, gold, a classic haven asset, rose 1% to $1,960 per ounce, according to data source TradingView.
- The 60-day correlation between bitcoin and gold recently rose to a record high above 0.5. Correlations move between 0 to 1.
- Correlations whose magnitude are between 0.5 and 0.7 indicate the two assets are moderately positively correlated. Above 0.7 means a strong positive correlation, meaning the two assets are moving in tandem.
- Meanwhile, the U.S. Dollar Index, which gauges the greenback’s value against a basket of major currencies, fell by 0.4%.
- Bitcoin has evolved as a macro asset since the beginning of the coronavirus pandemic in March and has increasingly taken cues from the action in the forex markets and gold in Q3 2020.
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