The correlation between Bitcoin and gold drops to an 11 month low

According to The Block, the correlation between Bitcoin and gold has dropped to an 11 month low, which analysts believe is due to capital reallocation. Since the US election, the price of gold has fallen by over 5%, while Bitcoin has risen by over 20% in a week, indicating investors' strategic adjustment towards safe haven assets. QCP Capital analysts say that Bitcoin is gradually becoming a "digital gold" as funds shift from traditional safe haven assets such as gold to cryptocurrencies. After Trump won the election, the US dollar strengthened and the yield of US treasury bond bonds rose, making gold less attractive. The market expects that the new government's policies may lead to an increase in inflation, which in turn may affect the pace of interest rate cuts by the Federal Reserve. In addition, QCP analysis suggests that if 1% of the gold market's funds flow into Bitcoin, it could push its price up to approximately $97000.