Bitcoin Correlation with Gold Hits Six-Year High Amid Economic Uncertainty
Bitcoin's correlation with gold has reached its highest level since the pandemic stimulus era in 2020, according to Bitwise Europe Research Director André Dragosch. He pointed out that Bitcoin surged 22.4% in its strongest week since March 2024, while gold gained about 5%, despite falling stocks.
The three-month correlation between Bitcoin and gold has increased significantly, with Dragosch suggesting that investors are grouping the two assets together when concerns about monetary policy, government debt, and currency debasement intensify. This shift is not limited to the relationship between Bitcoin and gold, as its correlation with stocks has fallen to a one-year low.
The correlation with the U.S. Dollar Index is significantly negative, indicating that dollar weakness has benefited both BTC and gold. Dragosch noted that investors are making less distinction between Bitcoin and gold during periods of intense macroeconomic stress, with Bitcoin potentially becoming an 'amplified version of gold.'