Bitcoin-Gold Correlation Tops 50% as Debasement Trade Returns

Forecast Trend Report by Period

Bitcoin’s price correlation with gold has risen above 50%, while its correlation with the Nasdaq 100 has fallen sharply. The shift is fueling fresh interest in the so-called debasement trade, an investment strategy designed to hedge against a decline in the dollar’s value as U.S. fiscal strains deepen.

BlockBeats, a digital-asset media outlet, reported on Aug. 28 that Grayscale Research Head Zach Pandl said Bitcoin’s 90-day correlation with the Nasdaq 100 had recently fallen to about 33% from more than 60%. Its correlation with gold, by contrast, climbed to above 50% from just over 0% at the start of the year.

Pandl said Bitcoin had traded like other risk assets over the past year amid the boom in artificial intelligence investments. That relationship has recently started to shift. Grayscale said the change may signal that investors are once again focusing on Bitcoin’s scarcity, monetary independence and role as a store of value.