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Bitcoin rallies as its correlation with gold strengthens

Bitcoin is up 26% this month, and its 30-day correlation with gold has risen to +0.81 while its link to the dollar index has deepened to -0.86.

Reported · Written up by our desk · Market Structure

Bitcoin has been outperforming gold and major stock benchmarks as the digital asset’s correlation with gold strengthens, according to CoinDesk data cited in its Daybook newsletter. Bitcoin has surged 26% this month and was recently around $79,200, while gold has gained 13.8% and the Nasdaq 100 and S&P 500 have added 4.8% and 3.2%, respectively.

CoinDesk also points to TradingView data showing Bitcoin’s 30-day correlation with gold climbing to +0.81, suggesting the two assets are moving more in tandem. At the same time, Bitcoin’s relationship with the Dollar Index has deepened to -0.86, indicating it has been moving in the opposite direction to the greenback, while its link with the Nasdaq has weakened.

The newsletter ties the move to broader market concerns, noting that worries about the U.S. fiscal outlook recently pushed longer-duration Treasury yields to their highest level since 2007. CoinDesk says the U.S. Treasury’s recently announced bond buyback plan is intended to help tame yields, and investors are watching whether the Federal Reserve will need to step in.

CoinDesk adds that traders will look to Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium for clues on inflation and interest rates, including whether the Fed is open to any coordination with the Treasury. The newsletter notes Warsh has a preference for minimal forward guidance, lowering the odds of a major announcement.

Latest closeGold $4,666.20 ▲0.6%|Bitcoin $77,411.01 ▼3.5%|S&P 500 7,675.70 ▼0.0%

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