Bitcoin and gold correlation reaches six-year high amid dollar weakness

ChainCatcher report: Bitwise’s latest report shows that the correlation between Bitcoin and gold has reached a six-year high. André Dragosch, Bitwise’s Head of European Research, noted that the last time this level of correlation occurred was in 2020, during the multiple rounds of fiscal and monetary stimulus following the COVID-19 pandemic. Meanwhile, Bitcoin’s correlation with stock markets has dropped to a one-year low, suggesting a decoupling between hard assets and equities. The report attributes the simultaneous rise in Bitcoin and gold to “substantial government intervention in the macro landscape.” Last month, the U.S. Treasury announced it would more than double the scale of its government debt buyback program, leading to a weaker dollar and prompting investors to return to gold and Bitcoin. In the same week, U.S. public debt surpassed $40 trillion for the first time, further eroding market confidence in the dollar. Bitwise stated that investors are no longer choosing between gold and Bitcoin to hedge against currency depreciation but are holding both simultaneously, adding that “for its first fifteen years, Bitcoin was priced as a risk asset; if this correlation trend continues, the next fifteen years could be very different.” Driven by this development, Bitcoin rose again this week, climbing nearly 6% in 24 hours and briefly approaching $81,438.