Bitcoin's Correlation with Gold Hits Nine-Year High
The correlation between Bitcoin's price and gold has reached its highest level in nearly nine years. The Pearson price correlation of BTC with gold over a 90-day window stands at +0.56, surpassing its previous record of +0.5 in November 2020. This increased coupling suggests that the narrative of 'digital gold' is gaining traction for Bitcoin, potentially displacing its association as a tech investment.
The correlation between BTC and the Nasdaq 100 index has dropped to roughly +0.30 over the same period, marking a one-year low. In contrast, on a shorter 30-day timeframe, gold's correlation with BTC has risen to an even higher Pearson rating of +0.72, while its Nasdaq composite correlation sunk to 0.22.
The sudden increase in the debasement trade following US Treasury Secretary Scott Bessent's announcement of Quantitative Easing (QE) Lite is seen as a key factor behind this shift. The day after the announcement, gold rallied 4.6%, BTC skyrocketed 9.2%, and silver and platinum both surged 6%. Nasdaq barely budged that day.