Bitcoin correlation with gold hits six-year high

Bitcoin is increasingly exhibiting price behavior similar to gold, with its 90-day correlation reaching its highest level since 2020. Recent data indicates the correlation with gold has climbed above 0.5, while its relationship with the Nasdaq-100 has weakened to a one-year low of approximately 0.30 to 0.33.

Analysts suggest this shift reflects a growing perception of Bitcoin as a “digital gold” or a hedge against currency debasement, rather than a high-risk technology asset. This trend appears to be driven by macroeconomic concerns, including rising public debt, inflation fears, and bond market stress. Specifically, the U.S. Treasury’s announcement regarding increased limits for long-dated bond buybacks has been cited as a catalyst for this movement.

While the correlation with gold is rising, experts note that the two assets remain structurally different due to Bitcoin’s significantly higher volatility. Investors are increasingly utilizing Bitcoin as part of a “debasement trade,” seeking protection against the long-term loss of purchasing power in fiat currencies.