Bitcoin Correlation with Gold Hits Nine-Year High as Tech Stock Ties Fading
The correlation between Bitcoin and gold has reached its highest level since tracking began in 2017. According to Protos data, the 90-day correlation coefficient is now at 0.56, surpassing the previous peak of roughly 0.50 set in November 2020.
This shift is unfolding alongside what's being called August's 'debasement trade', a period marked by renewed interest in hard assets. Bitcoin's price action is increasingly mirroring that of gold, with some analysts attributing this trend to investors seeking safe-haven stores of value amid concerns about currency debasement and inflation.
However, the data also shows a weakening link between Bitcoin and tech stocks, particularly the Nasdaq 100. The 90-day correlation coefficient has fallen to around 0.30, marking a one-year low.