Bitcoin-Gold Correlation Hits Six-Year High Amid Rising Currency Devaluation Fears

The correlation between Bitcoin and gold has reached its highest level since 2020, according to Bitwise's Head of Research, Andre Dragos. This development is significant because it shows that investors are increasingly viewing Bitcoin as a safe-haven asset.

In August, the U.S. Treasury began purchasing long-term bonds, which led to a surge in Bitcoin's price by 22.4% in a week - its largest weekly gain since March 2024. Gold also increased by 5%, while stocks declined.

Dragos believes that investors are hedging against currency devaluation risks through both Bitcoin and gold. He notes that the precious metals market is significantly larger than the capital historically influencing Bitcoin's price, with a value of around $30 trillion.