Bitcoin Correlation with Gold Surpasses 50% Amid Fiat Currency Concerns

Grayscale's research arm has found that Bitcoin's correlation with gold has climbed above 50%, marking a sharp reversal from recent years. According to their research, Bitcoin's 90-day correlation with gold rose from near zero at the start of the year to above 50%. Over the same period, its correlation with the Nasdaq 100 slipped from more than 60% to roughly 33%

Grayscale Head of Research Zach Pandl said this shift may reflect renewed investor focus on Bitcoin's scarcity, monetary independence, and role as a store of value. He framed this finding as the return of the debasement trade, where hard assets tend to appreciate as fiat currencies lose purchasing power over time.

The US federal debt has passed $40 trillion, with persistent fiscal deficits renewing attention on scarce alternatives to cash. Bitcoin's rising correlation with gold suggests at least part of this flow may now be extending into digital assets as well.

Pandl argued that Bitcoin and other scarce digital assets may be entering a more favorable market regime under these conditions.