Bitcoin-Gold Correlation Hits Six-Year High Amid Sovereign Debt Concerns
The correlation between Bitcoin and gold has reached its highest level in nearly six years. According to data from Bitwise Asset Management and Bloomberg, the 90-day rolling correlation between the two assets rose to about 0.50 on September 5.
This marks a significant shift in the relationship between Bitcoin and traditional assets. The correlation coefficient measures how closely two assets move together, with a reading closer to 1 indicating prices tend to move in tandem.
The increased correlation between Bitcoin and gold can be attributed to growing concerns over sovereign debt and currency debasement. In response to these issues, investors have turned their attention to supply-constrained assets like gold and Bitcoin.
Meanwhile, the 90-day correlation between Bitcoin and the Nasdaq 100 Index has fallen to about 0.30, its lowest level in a year. This suggests that Bitcoin is no longer as closely tied to technology stocks as it once was.