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Bitcoin and gold correlation hits record as debasement trade builds
Bitcoin’s 30-day correlation with gold also hit a yearly high of 0.8, while the Fear and Greed Index stands at 68.
Bitcoin is trading in tighter lockstep with gold, with its 90-day Pearson correlation coefficient reaching an all-time high, according to The Block’s Data and Insights weekly newsletter.
The same newsletter said the 30-day correlation with gold climbed to a yearly high of 0.8. It also noted the Fear and Greed Index, a 0 to 100 measure of crypto sentiment, is currently at 68.
The Block attributed the recent price strength in both assets to a “debasement” narrative, where investors expect the dollar and other government-backed assets to lose value and seek shelter in hard assets.
The outlet added that gold and bitcoin ETFs have been among the strongest performers, with Bitcoin ETFs drawing nearly $1 billion in inflows last week. Despite the strong recent weeks, it said Bitcoin ETFs remain at $1.89 billion year to date, while individual ETFs such as BlackRock’s IBIT are up $1.2 billion in inflows for the year.
Latest closeGold $4,445.30 ▲1.2%|Bitcoin $77,087.06 ▼1.5%