Bitcoin-Gold Correlation Hits Six-Year High on Debasement Fears

The correlation between Bitcoin and gold has reached its highest point in six years as investors seek to protect themselves against currency debasement. According to a report from Bitwise, this surge is largely due to the U.S. government's intervention in the macro picture.

The Treasury Department's decision to more than double the size of its government debt repurchases led to a significant increase in Bitcoin's value last month. This was Bitcoin's best run in three years and its third-best August ever, with prices reaching close to $81,438 after jumping nearly 6% over a 24-hour period.

Bitwise's European Head of Research, André Dragosch, noted that the last time the bitcoin-gold correlation was this high was in 2020, following the rounds of fiscal and monetary stimulus during the Covid crisis. He added that Bitcoin's correlation with the stock market dropped to a one-year low, implying some kind of decoupling between hard assets and the stock market.