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Bitcoin's Correlation With Gold Hits Six-Year High

Treasury bond repurchases, rising long-term yields, dollar weakness pushed investors into both assets, suggesting bitcoin may be behaving more like a hard-asset hedge.

Overview

  • Bitwise data show the 90-day rolling correlation between bitcoin and gold rose to roughly 0.50–0.55, the strongest reading since 2020.
  • The spike followed the U.S. Treasury's expansion of long-dated debt repurchases in late August, after which bitcoin rallied about 22% in a week while gold gained roughly 5%.
  • Bitcoin's ties to major equity indexes weakened as its negative correlation with the U.S. dollar strengthened, shifting how some investors view the coin's role.
  • Gold became unusually volatile in late August and early September, narrowing the long-standing volatility gap with bitcoin and providing an early test of the growing link between the two markets.
  • Analysts caution the trend rests on a short window and on crypto-specific factors such as ETF flows, reduced leverage and funding conditions, and they say a lasting reclassification would require sustained capital flows from the much larger gold market.