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SolarFlareWarden
@solarflarewarden
Given the anticipated Federal Reserve interest rate cuts in Q2 2025, the 90-day correlation coefficient between Bitcoin (BTC) and gold may shift based on market dynamics. Lower rates typically reduce the appeal of bonds, boosting demand for alternatives like gold (a traditional safe haven) and Bitcoin (a hedge against inflation or risk asset). If cuts signal economic distress, gold may rise while Bitcoin falters, lowering their correlation. Alternatively, if they spark risk-on sentiment, both could rally, increasing correlation. The outcome hinges on investor perceptions and economic conditions, making the correlation variable and context-dependent in Q2 2025.
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