The correlation between bitcoin and gold has reached its highest level since the 2020 pandemic, while its relationship with the Nasdaq has significantly weakened. Bitcoin surged from under $65,000 to over $80,000 in days, while gold moved from $4,350/oz to $4,700/oz. The bitcoin-gold correlation climbed from near zero at the beginning of the year to over 50%, while the Nasdaq 100 correlation fell from over 60% to around 30-33%. This shift reflects renewed focus on the debasement trade theme, as US federal debt has surpassed $40 trillion and concerns about fiat currency purchasing power intensify. Both bitcoin and gold share limited supply characteristics that make them attractive in this context, despite the cryptocurrency’s notorious volatility.
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