Bitcoin vs. Gold: Correlation, Volatility, and Macro Hedge Analysis (2019-2024)

Over the past five years (2019-2024), Bitcoin (BTC) and gold have shown low and unstable correlations, with an average near zero, indicating they are not reliably coupled assets. While BTC has delivered significantly higher absolute and volatility-adjusted returns (Sharpe/Sortino ratios) than gold, this comes at the cost of extreme volatility and deeper drawdowns. Gold remains the more consistent and dependable macro hedge against inflation, policy risk, and crises, whereas BTC functions more as a high-beta, liquidity-sensitive asset, with its "digital gold" narrative proving largely episodic rather than structural.