Bitcoin's Gold Correlation Surges Amid Rising Debt

Bitcoin's correlation with gold has risen to nearly 50% over the last 90 days, signaling a potential bull run. This increase in correlation is likely due to investors seeking hedges against debasement, such as Bitcoin and gold, amid rising US debt of over $40 trillion.

The recent announcement of doubling the long-maturity bond buyback operations to $4 billion from $2 billion has also contributed to this trend. However, the long-term threat posed by government debt remains a concern.

Bitcoin's price has been holding steady above $77,000, with a bullish near-term bias due to its ability to maintain support above the 50-, 100-, and 200-day Exponential Moving Averages (EMAs). The Relative Strength Index (RSI) suggests firm but easing momentum.

Arbitrum (ARB) and Pyth Network (PYTH) have also recorded significant gains, with ARB up over 5% on Thursday and PYTH advancing its recovery for the fourth consecutive day.