Upwards until the most contempo correction, Bitcoin (BTC) cost was repeatedly pushing in a higher place $10,300 and attempting to reach a 2022 loftier above $9,500. 2022 started with a strong upwardly trend and altcoins followed Bitcoin'due south cost activeness, as thoroughly reported in Cointelegraph.

This aggregate trend leaves the door open for a total bullish period ahead since the terminal Bitcoin high growth menses was between April and June 2022.

The volatile behavior observed since the beginning of the year may be causing the traditional assumptions associated with Bitcoin and other acme currencies to be challenged. One of those assumptions is the belief that Bitcoin is closely connected to gilt.

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrencies and the precious metals narrative

A previous analysis reported by Cointelegraph has shown that the digital gold narrative attributed to Bitcoin may not be as realistic as investors believe. The lack of a significant human relationship betwixt Bitcoin returns and gold returns too as the depression correlations beyond the years are contributing to the challenge to the narrative.

The same can be said about the association between Litecoin and "digital silverish". The critical analysis of the relationships betwixt cryptocurrencies and precious metals opens the door for further research.

Correlation between tiptop 10 cryptocurrencies and gold

By analyzing the correlations between the acme x cryptocurrencies in the market and gold returns during January 2022, we unexpectedly establish that XRP, rather than Bitcoin, has the strongest correlation to gold. XRP is correlated at 34.1%, while Bitcoin is correlated at 21.5%. Moreover, both Ether (ETH) and Bitcoin Cash (BCH) share a very like correlation to gilt as Bitcoin does with xx.ane% and 19% respectively.

In the opposite direction, Tether (USDT) has an changed correlation with gold at -37.7%. This is surprising since the behavior of a stable coin like USDT could exist more than correlated with a precious metal like gilded than a much volatile coin like Bitcoin.

A correlation of 100% ways that each cryptocurrency and gold move completely in the same management, while -100% correlation means they are inversely related, or in simpler terms, when one goes up, the other goes downwardly. A correlation of 0% means that each cryptocurrency and gold is non related in any way.

Correlation between Bitcoin and the top 9 currencies since Jan. 1, 2022.

Correlation betwixt Bitcoin and the top 9 currencies since Jan. ane, 2022.

Past looking at a wider fourth dimension frame similar 2022, the assumption that Bitcoin is more related to gilt is sustained. Bitcoin is correlated at 15.5% with gold for the entirety of 2022, being the most correlated currency with aureate from the pinnacle x.

As seen before, Bitcoin Cash is the second most correlated currency with Bitcoin at 8.2%, followed by Bitcoin SV (BSV) at seven.three%. For the entirety of 2022, XRP is less correlated (seven.ane%) with gold than in 2022, challenging the idea that a stronger correlation can be sustained over a long-term catamenia.

Correlation between Bitcoin and the top 9 cryptocurrencies during 2022.

Correlation betwixt Bitcoin and the top ix cryptocurrencies during 2022.

Outstanding cumulative returns since the starting time of the twelvemonth

The outset of 2022 witnessed the commencement of a strong positive trend. If an investor bought whatsoever of the top 10 cryptocurrencies between January. 1, 2022 and Feb. 9, 2022, they would exist looking at a cumulative render of at least 134%, when Tether is excluded from the analysis. From the top ix currencies, Bitcoin produced the least profit, shifting 1's emphasis to the possible altcoin bull run ahead.

The biggest positive trend was seen by Bitcoin SV and Bitcoin Greenbacks with a cumulative return of 228% and 179%, respectively. Other top coins similar Binance Coin (BNB), EOS, Ether, Litecoin, Tezos (XTZ) and XRP offered investors a cumulative return between 138% and 167%. Meanwhile, gold prices grew by slightly more than 4% in January.

Cumulative returns for the top 10 currencies since Jan. 1, 2022.

Cumulative returns for the top 10 currencies since Jan. 1, 2022.

Cumulative returns for gold in January 2022.

Cumulative returns for gold in January 2022.

Which is digital gold, XRP or Bitcoin?

A contempo report from Coinbase suggests that Bitcoin will come closer to becoming digital gold due to underlying features of the network which are similar to the ones shared by gold every bit the scarcity of the asset aligns with the causeless bullish period ahead.

Nonetheless, the results also show that since the get-go of the year, XRP has been the cryptocurrency most correlated to gold and Bitcoin follows in 2d place. Equally we movement further into 2022, the relationship between gold and Bitcoin may come closer to 1 observed throughout 2022, when the digital asset was the most correlated money to gold.

The views and opinions expressed hither are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves adventure. You should conduct your own research when making a decision.