Bitcoin Gold Correlation Soars Amid Government Intervention

Bitcoin's correlation with gold has reached its highest level in six years, according to a report from Bitwise. The U.S. government's intervention in the macro picture has led investors to seek ways to hedge against currency debasement.

The Treasury Department's decision to more than double the size of its government debt repurchases last month sparked a surge in Bitcoin prices, with the coin experiencing its best run in three years and third-best August ever. The correlation between Bitcoin and gold has been growing, with investors increasingly viewing both assets as safe-havens.

Bitwise's European Head of Research, André Dragosch, noted that the last time the bitcoin-gold correlation was this high was in 2020, following 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.