Bitcoin and gold are moving in closer alignment as investors increasingly view both assets as hedges against currency debasement. The 90-day correlation between Bitcoin and gold has reached +0.50, more than doubling from early 2026 levels and nearly matching pandemic-era highs from 2020.
Meanwhile, Bitcoin's correlation with the Nasdaq 100 has fallen to approximately 0.30, marking its lowest level in one year. This divergence reflects a significant shift in how Bitcoin has traded relative to traditional equity markets this year.
Drivers of the Shift
The correlation surge accelerated following Treasury debt policy changes. On August 19, the US Treasury announced it would double buybacks of long-dated debt from $2 billion to at least $4 billion per operation. This announcement coincided with growing concerns about fiscal pressures, as US debt has reached approximately $40 trillion.
Both Bitcoin and gold are attracting investor attention as scarce assets in an environment of currency concerns. Central banks have also continued to show interest in gold reserves, with recent activity such as the Netherlands moving 86 tonnes of gold to London.
Current Market Levels
Gold currently trades near $4,430 per ounce, while Bitcoin hovers around $81,000. The correlation data comes from multiple sources including the Kobeissi Letter, Bitwise, and Bloomberg data through August 31.
