The correlation between Bitcoin and gold has reached a six-year peak, according to a report from Bitwise. Analysts note that both assets are moving in tandem as investors seek protection against the potential debasement of the U.S. dollar, a trend not seen since the 2020 fiscal stimulus.
The shift follows the U.S. Treasury Department's announcement regarding plans to more than double government debt repurchases. Concurrently, U.S. public debt has surpassed $40 trillion for the first time, further impacting market confidence in the national currency.
André Dragosch, European Head of Research at Bitwise, highlighted that Bitcoin's correlation with the stock market has fallen to a one-year low. This suggests a decoupling between traditional risk-on assets and hard assets, as investors increasingly utilize both Bitcoin and gold as hedges.
Bitcoin recently experienced a significant rally, climbing nearly 6% within a 24-hour window. The cryptocurrency was trading at approximately $81 438, marking its strongest performance in three years and its third-best August on record.