Bitcoin More Immune to Bond Market Volatility, Hard Asset Appeal May Surpass Gold

Odaily News As concerns grow over the fiscal health of developed economies, gold and Bitcoin have moved higher in tandem recently. As of now, the 90-day correlation coefficient between BTC and gold daily returns has risen to 0.59, the highest level since 2020.

However, compared with gold, Bitcoin appears to be more "immune" to bond market volatility. Data shows that the 90-day correlation coefficient between BTC and the U.S. 10-year Treasury yield stands at just -0.17, suggesting that rising U.S. Treasury yields have a relatively limited negative impact on Bitcoin. During the same period, the correlation coefficient between gold and the 10-year Treasury yield was -0.41. Analysts suggest this indicates that Bitcoin is less tied to bond market forces than gold, and its "hard asset" attributes may become more prominent amid growing expectations of fiscal risk and financial repression. (Investing)