Bitcoin Correlation with Gold Surpasses 50% Amid Debasement Trade Revival

Bitcoin's correlation with gold has climbed above 50% this year, according to Grayscale's research arm. The asset manager notes that Bitcoin's 90-day correlation with gold has increased significantly from near zero at the start of the year.

The shift marks a sharp reversal from recent years, when Bitcoin frequently traded in step with growth stocks. Grayscale Head of Research Zach Pandl said the return of the 'debasement trade' may reflect renewed investor focus on Bitcoin's scarcity, monetary independence, and role as a store of value.

The 'debasement trade' refers to the argument that hard, supply-capped assets appreciate as fiat currencies lose purchasing power. Grayscale argues that Bitcoin and other scarce digital assets may be entering a more favorable market regime.