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Bitcoin tracks gold at six-year high amid debasement hedging fears
A Bitwise report links the surge to U.S. Treasury actions, including plans to more than double debt repurchases and the Treasury noting public debt first exceeded $40 trillion.
Bitcoin is trading more in sync with gold, with its correlation with the precious metal at the highest level in six years, according to a new Bitwise report cited by Bitcoin Magazine.
The report attributes the tight linkage to renewed debasement hedging, saying investors are increasingly looking to gold and bitcoin as protection as confidence in the dollar is tested.
Bitcoin started surging last month after the U.S. Treasury said it would more than double the size of its government debt repurchases, a shift that also pushed the dollar lower and drove inflows into gold and bitcoin.
Bitcoin Magazine adds that, alongside the repurchase plan, the Treasury said U.S. public debt exceeded $40 trillion for the first time, and Bitcoin was recently trading near $81,438 after jumping nearly 6% over 24 hours.
Latest closeGold $4,431.70 ▲1.9%|Bitcoin $79,153.04 ▼1.5%