Bitcoin-Gold correlation reaches 50% as demand for inflation hedging increases

Odaily Planet Daily reports that Zach Pandl posted on X that Bitcoin’s 90-day correlation with the Nasdaq 100 has dropped from over 60% to approximately 33%, while its correlation with gold has risen from nearly zero at the start of the year to over 50%, reflecting investors’ renewed focus on Bitcoin’s scarcity and store-of-value properties. Zach Pandl stated that the “currency debasement trade” is returning—buying scarce assets to hedge against fiat currency depreciation. U.S. federal debt has surpassed $40 trillion, and long-term Treasury yields have risen significantly, prompting investors to seek assets that hedge against deteriorating fiscal and monetary fundamentals. Grayscale believes that Bitcoin, born after the 2008 financial crisis, possesses characteristics such as no central issuer and a fixed supply cap, positioning it alongside gold as a scarce and liquid alternative asset that may now be entering a more favorable market environment.