Bitcoin and Gold Correlation Hits 6-Year High Amid Currency Debasement Fears

The correlation between Bitcoin and gold has reached its highest level in six years, according to Bitwise. The firm's CIO, André Dragosch, noted that this surge is due to investors holding both assets as a hedge against currency debasement risks.

Bitcoin's price rose 23% over the last month to $79,262, while gold increased by 9% to $4,512. This move pushed the correlation between the two assets to its highest point since 2020.

Dragosch attributed this trend to investors choosing to hold both Bitcoin and gold as they worry about the weakening of fiat currencies due to bond sales.

The Bitwise executive noted that Bitcoin is now diverging from stocks, with its correlation dropping to a six-year low. However, he also warned that if interest rates rise, it could lead to a drop in the price of Bitcoin and gold.