Bitcoin-Gold Correlation Reaches Record High

Bitcoin’s 90-day correlation with gold has risen to 0.56, exceeding its previous peak of about 0.50 in November 2020 and reaching the highest level recorded by major data providers since 2017. On a 30-day basis, Bitcoin’s correlation with gold climbed to 0.72. At the same time, Bitcoin’s correlation with the Nasdaq 100 fell from above 60% earlier in the period to roughly 30%, a one-year low; its correlation with the Nasdaq Composite was about 0.22 over 30 days. The shift followed an August rally that lifted Bitcoin from below $65,000 to above $80,000, while gold rose from about $4,350 to $4,700 an ounce before retreating. Analysts linked the stronger Bitcoin-gold relationship to renewed demand for the currency-debasement trade, including concerns about US debt, fiscal deficits and fiat currency weakness. The US Treasury’s decision to at least double the maximum size of liquidity-support buybacks for longer-dated government debt, from $2 billion to $4 billion per operation, also helped drive the market move. Grayscale research chief Zach Pandl said Bitcoin’s correlation with gold increased from near zero at the start of the year to more than 50%. The data strengthens the digital-gold narrative and suggests some investors are treating Bitcoin as a scarce monetary asset rather than solely as a high-beta technology trade. However, Bitcoin remains sensitive to macroeconomic data, interest-rate expectations and equity-market moves. Both Bitcoin and US stocks fell after a strong jobs report. The Bitcoin-gold correlation is therefore an important cross-asset indicator, but it does not guarantee a specific price direction.