Bitcoin Ties to Gold Strengthen as Nasdaq Correlation Fades
Bitcoin's correlation with gold has reached extreme historical levels, with its 90-day correlation rising above 50% and its correlation with the Nasdaq 100 falling to around 33%. This shift suggests that investors are increasingly viewing Bitcoin as a scarce digital hedge against inflation, thanks to its fixed supply of 21 million coins. According to Adam Livingston, Bitcoin is behaving more like 'hard money' like gold, rather than a high-risk technology asset.
The correlation between Bitcoin and gold has been compared to the setup in 2020, when a similar pattern produced 68 matching trading days between July 27th and November 27th, 2020. During this period, Bitcoin's price rose from around $10,000 to nearly $69,000 by November 2021.
However, gold is facing concerns over token concentration and insider selling. Lookonchain data reveals that a developer held 600 million in GOLD, while 15 newly created wallets spent $18,657 to buy 224.5 million in GOLD, controlling around 82.45% of the total supply.