The US national debt exceeded $40 trillion in August 2026, prompting the Treasury Department to initiate long-term debt buybacks. This fiscal environment has led to a decline in Treasury values and a weakening dollar, driving investors toward Bitcoin and gold.
In late August 2026, Bitcoin prices increased by approximately 23%, exceeding $77,000. By early September, the 90-day correlation between Bitcoin and gold reached a multi-year high, surpassing 0.5.
Options market data from mid-September shows a bullish sentiment for gold, with a call-to-put ratio exceeding 5:1 for SPDR Gold Shares. Conversely, Bitcoin ETF options display a more balanced distribution of bullish and bearish positions.
Research from Bitwise indicates that a 15% portfolio allocation split between Bitcoin and gold yields a Sharpe ratio of 0.679. This figure is nearly three times higher than the Sharpe ratio of a standard 60/40 stock-and-bond portfolio.
Studies by Nansen support the strategy of combining digital and physical assets to improve risk-adjusted returns. Institutional interest remains evident, with both Bitcoin and gold exchange-traded funds recording increased inflows.
