Bitcoin's Gold Rush: Historic Correlation Shifts Macro Profile

The correlation between Bitcoin and gold has reached historic levels, according to analysis by Adam Livingston. The 120-day correlation between the two assets hit the 99.5th percentile of all readings since 2020.

This shift in the macro profile of Bitcoin is significant, as it now trades more like a monetary asset with continued risk-on exposure. Bitcoin's link to gold exceeds its QQQ correlation by 0.19, the widest gap in the post-2020 dataset.

The combination of low volatility and extreme gold correlation stands out. Over the same 120-day period, Bitcoin's correlation with gold amounted to 0.52, while its correlations with the S&P 500 (SPY) and the Nasdaq-100 (QQQ) were 0.34 and 0.33, respectively.