Bitcoin's 36% Surge Sparks Debate Over Shift in Correlation

Bitcoin has surged by 36% since August 18, outperforming stocks and gold in the process. The SPDR S&P 500 ETF Trust (SPY) returned only 0.05%, while the SPDR Gold Shares (GLD) dropped 1.4% over the same period.

This divergence has led to renewed discussions about whether the established correlation between Bitcoin, stocks, and gold is coming to an end. The 36% run-up raises questions about whether this is a genuine shift or just a short-term anomaly that might revert to the historical trend.

Correlation metrics can vary across time frames, with a five-week reading differing from a 90-day reading. Currently, Bitcoin's performance over the past five weeks shows a rise against a flat stock market and declining gold price in a calm context, but the longer-term 90-day correlation with gold suggests otherwise.