Bitcoin-Gold Correlation Rises to 50% as Currency Debasement Trade Returns

Odaily News: Zach Pandl stated on the X platform that Bitcoin's 90-day correlation with the Nasdaq 100 Index has dropped from over 60% to approximately 33%, while its correlation with gold has risen from near zero at the beginning of the year to over 50%, reflecting that investors are refocusing on Bitcoin's scarcity and store-of-value functions. Zach Pandl noted that the "currency debasement trade" is making a comeback—buying scarce assets to hedge against fiat currency depreciation. U.S. federal debt has now surpassed $40 trillion, with long-end Treasury yields rising markedly, prompting investors to seek assets that hedge against deteriorating fiscal and monetary fundamentals. Grayscale believes that Bitcoin, born in the aftermath of the 2008 financial crisis, features no central issuer and a fixed supply cap, positioning it alongside gold as a scarce and liquid alternative asset that may be entering a more favorable market environment.