The 90-day correlation between Bitcoin and gold has reached its highest level since 2020. Simultaneously, Bitcoin has decoupled from the stock market, according to a memo by Bitwise’s Head of Research, Andre Dragos.
“In truly significant situations, Bitcoin can act as ‘digital gold.’ Now, this factor might start to matter for the market,” the expert noted.
Dragos linked the change in correlation dynamics to macro events in August. According to Bitwise, after the U.S. Treasury began purchasing long-term bonds, Bitcoin rose by 22.4% in a week—the largest weekly gain since March 2024. Meanwhile, gold increased by 5%, and stocks declined.
“The claim that Bitcoin is ‘just an investment in tech assets using leverage’ might be incorrect,” he added.
Bitcoin’s correlation with the Nasdaq 100 has dropped to a one-year low. Its relationship with the U.S. Dollar Index (DXY) also remains negative.
Dragos suggested that investors are increasingly hedging currency devaluation risks simultaneously through Bitcoin and gold.
According to the researcher, the precious metals market is about $30 trillion, significantly larger than the capital historically influencing Bitcoin’s price.
“When situations become serious and macroeconomic factors intensify, investors begin to see less distinction between Bitcoin and gold as they face growing currency devaluation risks. In recent scenarios, the leading cryptocurrency has appeared as an enhanced version of gold,” Dragos emphasized.
In August, Robert Mitchnick, head of BlackRock’s digital assets division, stated that concerns over U.S. debt and deficit are driving investors towards Bitcoin and gold.
