Bitcoin Gold Correlation Hits Pandemic-Era Highs Amid Treasury Bond Buybacks
The correlation between Bitcoin and gold has reached a 6-year high, according to recent data from Bitwise. The 90-day correlation between the two assets has jumped to pandemic-era highs, with a reading of over 0.50.
This means that Bitcoin is currently moving in tandem with gold, treating it more like a safe-haven asset than a digital currency. This shift in behavior could have implications for how investors view and trade both assets, particularly as concerns about US debt continue to mount.
Bitwise's head of research, André Dragosch, noted that the correlation strengthened after the Treasury announced bond buybacks, which could be driving demand towards gold and Bitcoin. He also pointed out that previous spikes in the Bitcoin-gold correlation were often linked to government interventions.