Bitcoin and gold correlation reaches six-year high amid dollar concerns

Bitcoin’s price movements are now closely matching those of gold, reaching their highest correlation in six years. This shift comes as investors increasingly turn to both assets to protect against a potential decline in the value of the U.S. dollar.

A report from Bitwise, an investment firm, notes that this alignment reflects growing concerns about government actions affecting the dollar. The U.S. Treasury recently announced plans to more than double its government debt repurchases, which weakened the dollar and drove investors toward assets like gold and bitcoin.

Highest correlation since 2020

The last time bitcoin and gold moved this closely together was in 2020, during the economic stimulus measures in response to the Covid-19 pandemic. André Dragosch, Bitwise’s European Head of Research, highlighted that bitcoin’s correlation with the stock market has meanwhile dropped to a one-year low, suggesting a separation between traditional stocks and assets seen as stores of value.

Why investors are turning to both assets

The U.S. public debt recently exceeded $40 trillion for the first time, raising concerns about the dollar’s stability. According to the Bitwise report, investors are no longer choosing between gold or bitcoin to hedge against currency risks—they are using both. This trend suggests a broader shift in how bitcoin is viewed, moving away from its past association with high-risk tech stocks.

Bitcoin’s price rose nearly 6% in a 24-hour period this week, trading close to $81,438, according to Bitcoin Magazine’s price tracker.

What is confirmed

• Bitcoin’s correlation with gold is at a six-year high.
• The U.S. Treasury announced plans to more than double government debt repurchases.
• U.S. public debt has surpassed $40 trillion.
• Bitcoin’s correlation with the stock market is at a one-year low.
• Bitcoin’s price recently approached $81,438 after a 6% increase in 24 hours.

Sources

• Bitcoin Magazine