Gold Correlation Surges Past 50% as Debts Rise and Yields Climb

Bitcoin's correlation with gold has broken above 50%, while its link to the Nasdaq 100 has dropped to a two-year low. This shift is part of a larger trend, as $40 trillion in US federal debt and rising long-term yields revive the debasement trade.

In the cryptocurrency space, inflows into Bitcoin ETFs have been steady, with each logging nine straight days of investment. Meanwhile, spot strength and leverage flushed out of the market, with futures open interest shrinking 11% while funding rates remained neutral.

The rotation from crypto to equities is also underway, as Bitcoin's rally sent miner stocks soaring. Canaan, for example, saw its price surge by up to 67%, far outperforming AI-related stocks.