Bitcoin-Gold Correlation Hits Highest Since 2017 as Nasdaq Link Falls to One-Year Low

Forecast Trend Report by Period

Bitcoin's correlation with gold has strengthened sharply while its link to the tech-heavy Nasdaq has weakened, highlighting the cryptocurrency's "digital gold" narrative.

Wu Blockchain, citing Protos on Sept. 7, reported that the 90-day correlation coefficient between Bitcoin and gold rose to 0.56. That marked the highest level since major data providers began tracking the metric in 2017, surpassing the previous peak of about 0.50 in November 2020.

By contrast, the 90-day correlation between Bitcoin and the Nasdaq 100 Index fell to about 0.30, the lowest level in a year. The move suggests Bitcoin is trading less in tandem with risk assets, including technology stocks, than it did previously.

The shift was even more pronounced in shorter-term data. Over the past 30 days, Bitcoin's correlation with gold climbed to 0.72, while its correlation with the Nasdaq Composite Index stood at 0.22.

Protos said the trend gathered momentum last month as the so-called debasement trade came into focus amid concerns about currency debasement. That, it said, has reinforced the "digital gold" narrative that casts Bitcoin as a store of value similar to gold.