Bitcoin-Gold Correlation Hits Six-Year High Amidst Bond Market Selloff
Bitcoin's correlation with gold has reached a nearly six-year high after yields on longer-dated U.S. Treasurys moved higher, according to data from Bitwise.
The 90-day correlation between Bitcoin and gold rose in response to the bond market selloff, with Bitcoin increasing by 22.4% over the following week, its biggest weekly gain since March 2024, while gold added about 5%. Stocks fell during this time.
André Dragosch, director of research for Bitwise in Europe, noted that the last comparable reading was in 2020, around the time governments and central banks responded to the Covid crisis with fiscal and monetary stimulus. Bitcoin's correlation with gold has been impacted by rising currency debasement risks.
Dragosch said, 'When things get serious and macro forces are strong, investors are discriminating less and less between bitcoin and gold as they navigate rising currency debasement risks.'