Bitcoin-Gold Correlation Hits 5-Year High as Nasdaq Link Weakened

Bitcoin's correlation with gold has reached its highest level since 2017, according to recent data from Protos. The 90-day correlation coefficient between Bitcoin and gold rose to 0.56, surpassing the previous peak of about 0.50 in November 2020.

This strengthening of the digital gold narrative comes as the cryptocurrency's link to the tech-heavy Nasdaq has weakened. The 90-day correlation between Bitcoin and the Nasdaq 100 Index fell to about 0.30, marking its lowest level in a year.

Looking at shorter-term data, over the past 30 days, Bitcoin's correlation with gold climbed to 0.72, while its correlation with the Nasdaq Composite Index stood at 0.22. This trend suggests that Bitcoin is trading less in tandem with risk assets than it did previously.