Bitcoin-Gold Correlation Rises Above 50% as Nasdaq Link Weakens

The correlation between Bitcoin and gold has strengthened, reaching above 50% over the past 90 days, according to Grayscale Research. This shift is particularly noteworthy as it contrasts with the weakening link between Bitcoin and the Nasdaq 100, which has dropped from above 60% to around 33%. The increasing interest in Bitcoin's scarcity and fixed supply of 21 million coins may be driving this change.

Grayscale Research Head Zach Pandl noted that Bitcoin's price had previously traded more like a high-risk growth asset during the recent artificial intelligence investment boom. However, the current market dynamics suggest that investors are now paying closer attention to Bitcoin's limited supply and fixed issuance rules.

The rising U.S. federal debt above $40 trillion, persistent budget deficits, and higher long-term Treasury yields have also contributed to the growing interest in the debasement trade. In this context, Bitcoin is increasingly being compared to scarce monetary assets like gold.