Bitcoin Correlation with Gold Hits Six-Year High Amid Debasement Fears

Bitcoin's correlation with gold has reached its highest level in six years, according to Bitwise. This trend is largely driven by investors seeking to hedge against currency debasement following the U.S. Treasury's announcement that it would more than double debt repurchases and the U.S. public debt exceeding $40 trillion for the first time.

As of this week, Bitcoin's price has jumped nearly 6% in a 24-hour period to around $81,438. Bitwise's European Head of Research, André Dragosch, noted that the last time the bitcoin-gold correlation was this high was in 2020, following the Covid stimulus rounds.

The report highlights that Bitcoin's correlation with stocks has dropped to a one-year low, implying a decoupling between hard assets and the stock market. This shift could have significant implications for crypto adoption and portfolio hedging.