Bitcoin correlation with gold hits record highs

Bitcoin's correlation with gold has hit record highs, while its link to tech stocks has weakened. Bitcoin is also less sensitive to U.S. Treasury yields than gold, making it a more resilient asset.

Recent analyses show Bitcoin's 90-day correlation with gold has surged to record highs, reaching between 0.56 and 0.59—the strongest level since 2017 and surpassing previous peaks set in 2020. This trend highlights Bitcoin's evolving role as 'digital gold' and a safe haven asset, especially as its correlation with the Nasdaq 100 index has dropped to a one-year low of around 0.30. Bitcoin also demonstrates lower sensitivity to changes in U.S. 10-year Treasury yields compared to gold, with a correlation coefficient of just -0.17 versus gold's -0.41. This suggests that rising bond yields negatively impact gold more than Bitcoin, positioning Bitcoin as a more resilient hard asset amid fiscal concerns and volatile bond markets. Recent market events, such as increased U.S. Treasury bond buybacks and surging federal debt, have seen Bitcoin outperform gold in price gains. However, analysts caution that while Bitcoin shows greater independence from traditional bond markets, it remains exposed to broader macroeconomic risks.