Bitcoin-Gold Correlation Hits Nearly Six-Year High As BTC Breaks From Tech Stocks

Bitwise said that Bitcoin is increasingly trading like gold rather than a tech asset, strengthening its long-running “digital gold” case.

• Bitwise said Bitcoin’s 90-day correlation with gold climbed to its highest level since 2020, while BTC gained 22.4% in one week and gold rose about 5%.
• Its relationship with tech stocks weakened, with the 90-day correlation with the Nasdaq-100 falling to around 0.33, a one-year low.
• The US Dollar Index moved in the opposite direction, while the Treasury prepares to increase some long-term bond buybacks.

Bitcoin (BTC) is beginning to show a shift in the way investors are trading it, building its case as a hedge against market turmoil similar to gold and moving further from its long-standing reputation as a high-risk asset. New research from Bitwise revealed that Bitcoin’s 90-day correlation with gold has reached its highest point since 2020, while its correlation with the Nasdaq-100 has fallen to a one-year low.

According to a memo from Bitwise Director and Head of Research André Dragosch, the change came during a volatile period in the global markets. According to the report, Bitcoin gained 22.4% over the past week, its strongest weekly performance since March 2024. In contrast, gold rose about 5% during the same period, while stocks continued to decline.

Bitcoin Starts Trading More Like Gold

At the same time, Bitcoin’s 90-day correlation with the Nasdaq-100 fell to a one-year low after dropping to around 0.33 in late August. According to Dragosch, it is notable since Bitcoin has often traded like a high-risk tech asset. Bitwise added that the latest data suggest that the relationship may now be weakening. Bitwise reported that Bitcoin’s 90-day correlation with the U.S. Dollar Index at -0.35 in late August.

The negative reading shows that the two tended to move in opposite directions over the period. The firm also added that Bitcoin and gold are not identical assets. Gold has a much longer history as a store of value, while Bitcoin is newer and has historically been more volatile.

Bitcoin has performed better than gold over the past three months, up 30.59% vs. gold’s 2.62%. Both assets gained in August, but BTC’s more aggressive rallies and selloffs reveal its much higher volatility. The chart shows Bitcoin participating in the same broader “debasement trade” as gold, while still acting more like a high risk asset.

Bitcoin’s price was trading at $79,978, below 3% in the last 24 hours. On Stocktwits, retail sentiment around BTC remained in the ‘neutral’ zone, accompanied by ‘normal’ chatter levels over the past day. 

XAUUSD’s price was trading at $4,429 at the time of writing. On Stocktwits, retail sentiment around XAUUSD remained in the ‘bearish’ zone, accompanied by ‘high’ chatter levels over the past day. 

Treasury Buybacks Put Liquidity In Focus

The research comes as the US Treasury prepares to increase some of its long-term bond buybacks. Treasury said it will increase the size of buybacks for 10- to 20-year and 20-to-30-year Treasury securities from $2 billion to at least $4 billion per operation, starting September 9. 

The department said the move aims to provide more liquidity in longer-dated Treasury markets. Bitwise argued that periods of stronger government intervention and concerns about the value of traditional currencies could make Bitcoin more attractive alongside gold. 

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