Bitcoin’s Correlation with Gold Reaches New Heights
- Data from Bitwise shows bitcoin‘s correlation with gold exceeded 0.5, a level last seen in 2020.
- U.S. national debt surpassed $40 trillion on August 18, doubling since its level in 2017.
- Treasury increased long-bond buybacks to $4 billion starting September, as bitcoin trades near $81,000.
- Gold prices rose by about 2% to approximately $4,490 an ounce on September 3.
The recent increase in bitcoin’s correlation with gold suggests a shift in market dynamics where investors are treating both assets similarly amidst rising currency debasement risks. This change is occurring alongside significant fiscal developments, such as the U.S.’s growing national debt and increased Treasury bond buybacks.
As bitcoin’s correlation with gold strengthens, it highlights a potential decoupling from traditional stock markets and emphasizes its role as a hedge against inflationary pressures.(Source)
