Bitcoin Price Surges as Correlation with Gold Hits Six-Year High

Bitcoin's price has surged by 23% in the last month to reach $79,262 on September 4. The surge in Bitcoin prices has pushed its correlation with gold to a six-year high, according to Bitwise.

CIO André Dragosch at Bitwise noted that during August, when US Treasury Secretary Scott Bessent announced plans to buy back government bonds, the price of Bitcoin recorded a 22.4% weekly gain. Meanwhile, gold's price rose by 5% week-over-week as most crypto stocks fell.

Dragosch attributed the correlation between Bitcoin and gold to investors holding both assets due to concerns about fiat currency weakening due to bond selling. The analyst noted that Bitcoin is diverging from stocks, with its correlation dropping to a six-year low.