Bitcoin–gold correlation surges to +0.50 (near 2020 pandemic highs) as investors seek currency debasement hedges, while Bitcoin–Nasdaq correlation drops to 1-year low.
Macro & Markets ·
Bitcoin and gold correlations have reached levels not seen since the 2020 pandemic, with their 90-day price correlation climbing to +0.50—more than double the start-of-year level and substantially higher than the +0.30 seen following the 2022 bear market recovery. This shift reflects a broader investor repositioning toward assets perceived as hedges against currency depreciation. The acceleration intensified following the US Treasury's August 19th announcement to at least double its long-dated government debt buybacks, from $2 billion to $4 billion per operation.
Simultaneously, Bitcoin's correlation with the Nasdaq 100 has declined to approximately +0.30, marking a one-year low. The divergence underscores a decoupling between cryptocurrency and equities, as investors increasingly view gold and Bitcoin through a currency-debasement lens rather than as risk-on tech assets. This reconfiguration of how Bitcoin trades relative to traditional markets and commodities remains consistent across multiple observations of the same period.
What remains unclear is whether this correlation shift will persist beyond near-term monetary policy developments or reflect a more permanent change in how institutional and retail investors allocate across these asset classes during periods of fiscal expansion.