Bitcoin Synchronizes with Gold as Tech Stock Ties Weaken
Bitcoin's correlation with gold has hit one of its highest levels in recent years, according to data from Bitwise Asset Management. The 90-day moving average correlation between Bitcoin and gold is now around +0.50, more than double the level at the beginning of the year.
This marks a significant shift for Bitcoin, which had previously been seen as a technology stock rather than a precious metal like gold. However, with concerns over rising public debt and currency depreciation, investors are increasingly viewing Bitcoin and gold as similar hedging assets.
The strengthening correlation between Bitcoin and gold has accelerated after the US Treasury Department announced an increase in the limit for long-term bond repurchases in August. This change has led to a decline in Bitcoin's correlation with technology stocks, particularly the Nasdaq 100 index, which now stands at around +0.30.