Bitcoin-Gold Correlation Reaches Highest Since 2020 as Tech Link Weakens
Bitcoin's correlation with gold hit a 6-year high while its Nasdaq relationship faded, driven by currency debasement concerns following US Treasury actions.
Why it matters
The shift suggests investors may increasingly view bitcoin as a macro hedge rather than a tech-correlated risk asset, which could affect its behavior during periods of fiscal stress and monetary policy uncertainty.
Key facts
Bitcoin's correlation with gold reached its highest level since the 2020 pandemic.
Reported by CryptoPotato
Bitcoin's correlation with the Nasdaq weakened significantly.
Reported by CryptoPotato
The US Treasury announced it would double liquidity-support buybacks for longer-dated government debt from $2 billion to $4 billion per operation.
4,000,000,000 USDReported by CryptoPotato
Bitcoin rose from under $65,000 to over $80,000 within days following the mid-August rally.
80,000 USDReported by CryptoPotato
Gold moved from $4,350/oz to $4,700/oz before being rejected.
4,700 USDReported by CryptoPotato
Bitcoin-gold correlation climbed from near zero at the beginning of the year to over 50%, according to Grayscale's Head of Research Zach Pandl.
50 %Reported by CryptoPotato
US federal debt surpassed $40 trillion.
40,000,000,000,000 USDReported by CryptoPotato
Analysts at the Kobeissi Letter argued that bitcoin's increasing correlation with gold accelerated following the Treasury's buyback announcement.
Reported by CryptoPotato
What happened
CryptoPotato reported that the correlation between bitcoin and gold has climbed to its highest level since the 2020 pandemic, while bitcoin's relationship with the Nasdaq has weakened significantly. The shift began after the US Treasury Department announced it would double the maximum size of liquidity-support buybacks for longer-dated government debt from $2 billion to $4 billion per operation. Analysts at the Kobeissi Letter argued that the bitcoin-gold correlation accelerated following the Treasury's move, with investors treating both assets as protection against currency debasement. Grayscale's Head of Research, Zach Pandl, noted that the bitcoin-gold correlation climbed from near zero at the beginning of the year to over 50%, while the Nasdaq correlation moved in the opposite direction. This came amid broader concerns about US federal debt surpassing $40 trillion and persistent government deficits.
How the story developed
- Official statement
US Treasury announces doubled liquidity-support buybacks
Treasury said it would at least double the maximum size of buybacks for longer-dated government debt from $2 billion to $4 billion per operation.
- Update
Bitcoin rallies from under $65,000 to over $80,000
BTC price surged within days following the Treasury announcement and the mid-August rally.
- First report
First report by CryptoPotato
Bitcoin’s Link to Gold Hits a 6-Year High as Tech Correlation Fades: Why It Matters
- Update
Bitcoin-gold correlation reaches 6-year high
The correlation between bitcoin and gold climbed to its highest level since the 2020 pandemic, with Grayscale reporting it rose from near zero to over 50% year-to-date.
Affected entities
Also mentioned: United Arab Emirates
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CryptoPotato Crypto media | Bitcoin’s Link to Gold Hits a 6-Year High as Tech Correlation Fades: Why It Matters | Original |
Related events
Grayscale Announces 3-for-1 Share Split for Zcash ETF ZCSH
Grayscale is splitting its Zcash ETF shares three-for-one effective September 30 after the fund approached $1 billion in assets within weeks of launch.
Zcash Breaks $1,000 for First Time Since 2018 as Grayscale ETF Surges Past $400 Million
Zcash surged above $1,000 on Sept. 4, its first breach of that level since 2018, while Grayscale's ZCSH spot ETF grew past $400 million in assets within two weeks of launch.
