Bitcoin vs Gold (Z-Score Normalized)

This chart compares normalized Bitcoin (BTC) and Gold prices over the last 180 days using Z-score standardization. Z-scores are calculated as:

Z = (Price - Mean) / Standard Deviation

This allows us to compare both assets on the same scale, even though they have different price levels. Z-scores highlight how each asset's price deviates from its own mean, making relative behavior and volatility easier to visualize.

How to Interpret Cross-Correlation vs Lag

The cross-correlation plot shows how closely BTC and Gold move together with different time lags applied.

• Lag = 0: Same-day correlation.
• Lag > 0: Gold lags behind BTC.
• Lag < 0: Gold leads BTC.

Interpreting BTC vs Gold Cross-Correlation

The cross-correlation chart shows the strength of the relationship between Bitcoin and Gold over varying time lags.

• Negative lags mean Gold's movements happen before Bitcoin.
• Positive lags suggest Bitcoin reacts first and Gold follows.

In this case, the peak occurs at a negative lag, indicating that Gold often leads Bitcoin.

This could imply that macroeconomic signals influencing Gold may also impact Bitcoin shortly after, offering potential insights for traders and analysts.