More and more analysts believe that the correlation between Bitcoin and gold price trends is strengthening, and the market on Tuesday confirmed this.

The price of gold fell to around 1940 US dollars on Tuesday, down more than 4% from the high of 2075 US dollars last Friday; while Bitcoin fell above 11,500 US dollars, which also set an annual high of 12,000 US dollars a few days ago.

According to a previous report by “Beijing”, Bloomberg this month said in the crypto market outlook that the stable price of Bitcoin will be six times the price of gold per ounce. Data from Skew shows that the monthly correlation between these two assets has reached a record 68.9%.

Under the inflationary background of depreciation of the U.S. dollar, water injection by the central bank, and economic stimulus measures adopted by the government, gold and Bitcoin are considered to be stored-value assets to deal with this situation.

But on the other hand, the price of Bitcoin will also be affected by the fall in the price of gold. Singapore-based QCP Capital stated in its Telegram group that “as the yields on US Treasuries increase, gold is feeling downward pressure.”

QCP stated that investors should pay close attention to bond yields and gold market trends because they may be related to the prices of Bitcoin and Ethereum. As of press time, the U.S. 10-year bond yield is hovering around 0.6%, which is 10 basis points higher than the recent low of 0.5%. If bond yields continue to rise, gold may pull back further and may drive the price of Bitcoin lower.

Joel Kruger, a foreign exchange strategist at LMAX Digital, believes that the potential sell-off in the stock market poses a greater risk to the upward trend of Bitcoin than the pullback in gold. If the US Congress still fails to agree on a new round of economic stimulus measures, global stock markets may be under pressure.