Bitcoin Correlation with Gold Hits +0.50 as Nasdaq Link Falters

Bitcoin's correlation with gold has increased to +0.50 over the past 90 days, nearly matching its peak during the early months of the COVID-19 pandemic in 2020. This trend marks a significant shift as investors increasingly turn to both assets as hedges against fiscal and currency risks.

The US Treasury's decision to double the size of its long-dated debt buyback operations has contributed to this trend, reflecting a shift in policy that has echoed across financial markets.

While Bitcoin's correlation with gold intensifies, its relationship with tech stocks, specifically the Nasdaq 100, has weakened. The 90-day correlation between Bitcoin and the Nasdaq 100 has dropped to approximately 0.30, marking the lowest reading in a year.