Bitcoin Trades Like Gold Amid Market Volatility

Bitcoin's correlation with gold has reached its highest point since 2020, according to research from Bitwise. The firm found that Bitcoin's 90-day correlation with gold climbed to a nearly six-year high in late August, while its relationship with tech stocks weakened.

The correlation with the Nasdaq-100 fell to around 0.33, a one-year low, during the same period. In contrast, Bitcoin gained 22.4% over the past week, its strongest weekly performance since March 2024. Gold rose about 5% during the same time.

Bitwise Director and Head of Research André Dragosch noted that this change came during a volatile period in global markets. He also pointed out that Bitcoin has historically been more volatile than gold, but now appears to be participating in the 'debasement trade' alongside gold.