Bitcoin's Gold Rush: Correlation Hits 6-Year High Amid US Debt Concerns

The correlation between Bitcoin (BTC) and gold has reached its highest level since the pandemic in 2020, while its relationship with the Nasdaq has weakened significantly.

This shift comes as concerns about debt, deficits, and currency debasement have returned to the spotlight after recent developments in the US.

The change started following a mid-August rally, which was propelled by the US Treasury Department's announcement that it would at least double the maximum size of liquidity-support buybacks for longer-dated government debt.

BTC rocketed from under $65,000 to over $80,000 within days, while gold went from $4,350/oz to $4,700/oz before it was rejected.