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

Odaily Planet Daily reported that Zach Pandl stated on the X platform that the 90-day correlation between Bitcoin and the Nasdaq 100 index has fallen from over 60% to approximately 33%, while the correlation with gold has risen from near zero at the beginning of the year to over 50%, reflecting that investors are once again focusing on Bitcoin's scarcity and store-of-value functions. Zach Pandl noted that the "currency debasement trade" is making a comeback, meaning investors are buying scarce assets to hedge against fiat currency depreciation. U.S. federal debt has surpassed $40 trillion, and long-term Treasury yields have risen significantly, prompting investors to seek assets that hedge against deteriorating fiscal and monetary fundamentals. Grayscale believes that Bitcoin, born after the 2008 financial crisis, possesses characteristics such as having no central issuer and a fixed supply cap, and can serve alongside gold as a scarce and liquid alternative asset, potentially entering a more favorable market environment.