Bitcoin's 90-day correlation with gold has reached its highest level since 2020. Simultaneously, Bitcoin has decoupled from the stock market, according to a note from Bitwise's head of research, Andre Dragosh.
Source: Bitwise."In genuinely critical situations, Bitcoin can act like 'digital gold'. This factor may start to matter for the market now," the expert remarked.
Dragosh attributed the shift in correlation dynamics to macroeconomic events in August. According to Bitwise, after the U.S. Treasury began purchasing long-term bonds, Bitcoin surged by 22.4% in one week, marking its largest weekly increase since March 2024. In contrast, gold rose by 5%, while stocks declined.
"The claim that Bitcoin is merely an investment in tech assets using borrowed funds may prove to be incorrect," he added.
The correlation between Bitcoin and the Nasdaq 100 has dropped to a yearly low, and its relationship with the U.S. Dollar Index (DXY) remains negative.
Source: Bitwise.Dragosh speculated that investors are increasingly hedging against currency devaluation risks through both Bitcoin and gold.
His analysis estimates the market for the precious metal to be around $30 trillion, significantly surpassing the capital historically used to set Bitcoin's price.
"When situations become serious and macroeconomic factors intensify, investors begin to blur the lines between Bitcoin and gold as they face rising currency devaluation risks. In recent scenarios, the first cryptocurrency has appeared as an enhanced version of gold," Dragosh emphasized.
Additionally, in August, Robert Mitchnick, head of the digital assets division at BlackRock, stated that concerns over U.S. debt and deficits are driving investors towards Bitcoin and gold.