Bitcoin’s Gold Correlation Jumps Above 50% as Nasdaq Link Falls to 33%

Bitcoin is trading increasingly in line with gold and less like a technology-linked risk asset, according to Grayscale Head of Research Zach Pandl, who pointed to a sharp change in the cryptocurrency’s recent correlations.

The 90-day correlation between Bitcoin and gold has moved above 50%, after beginning the year near zero. Over the same period, Bitcoin’s correlation with the Nasdaq 100 has declined to roughly 33% from more than 60%.

Pandl said the shift may reflect investors increasingly viewing Bitcoin through its limited supply, independence from traditional monetary systems, and potential as a long-term store of value.

The change comes as U.S. federal debt has surpassed $40 trillion and fiscal deficits remain persistent. Pandl said those conditions have renewed attention on the “debasement trade,” a thesis centered on assets that could benefit from concerns over the erosion of fiat currency purchasing power.

He said the backdrop could create a more favorable market regime for Bitcoin and other scarce digital assets.

Source: Grayscale