Bitcoin · U.S. Treasury · Bitcoin Magazine
Bitcoin-Gold Correlation Hits Six-Year High as Debasement Fears Mount
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Bitcoin is trading with gold, something it does when investors lose confidence in the dollar.
Key facts
- The leading cryptocurrency again rallied this week, and was recently trading for close to $81,438 after jumping nearly 6% over a 24-hour period
- The Treasury the same week also said the U.S. public debt exceeded $40 trillion for the first time
- The last time the bitcoin-gold correlation was that high was in 2020, following the rounds of fiscal and monetary stimulus during the Covid crisis,” Bitwise’s European Head of Research, André
- Bitcoin started surging last month, after the U.S. Treasury Department said it would more than double the size of its government debt repurchases
Summary
Bitcoin’s correlation with gold is at its highest in six years as investors increasingly look for ways to hedge against currency debasement. That’s according to a new report from Bitwise, which this week pointed out that the precious metal and leading cryptocurrency are trading in lockstep because the U.S. government has “materially intervened in the macro picture.” Bitcoin started surging last month, after the U.S. Treasury Department said it would more than double the size of its government debt repurchases. “The last time the bitcoin-gold correlation was that high was in 2020, following the rounds of fiscal and monetary stimulus during the Covid crisis,” Bitwise’s European Head of Research, André Dragosch, wrote.