Bitcoin and Gold Correlation Exceeds 50%, Approaching Six-Year High

The 90-day correlation between Bitcoin (BTC) and gold has surpassed 50%, nearing its highest level since 2020. The correlation with the Nasdaq has dropped to about 33%, suggesting that BTC is showing a closer relationship with gold than with tech stocks. Bitwise reported that as of the end of August, the 90-day rolling correlation between BTC and gold has reached a peak level. CryptoBriefing noted that the 90-day correlation between BTC and gold has exceeded 50%, while the correlation with the Nasdaq is around 33%. Correlation is an indicator that shows the degree to which the prices of two assets move in the same direction, with higher numbers indicating a stronger tendency to move together. This figure is at the center of the debate over whether BTC should be viewed simply as a high-beta tech asset or as an asset reflecting the risk of currency value depreciation alongside gold. The head of Bitwise's European research stated that in a phase of strengthening macro forces, investors are increasingly less distinguishing between BTC and gold. Changes in macro variables surrounding interest rates, the dollar, and long-term government bonds are the backdrop. However, it is premature to conclude that this trend indicates a structural change, as correlation indicators are merely statistics comparing already occurred price movements.