Bitcoin Is More Immune to Bond Market Volatility, Hard Asset Characteristics May Outshine Gold

Odaily Planet Daily News As market concerns grow over the fiscal health of developed economies, gold and Bitcoin have recently strengthened in tandem. 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 to gold, Bitcoin appears to be more "immune" to bond market volatility. Data shows that the 90-day correlation coefficient between BTC and the 10-year U.S. Treasury yield is only -0.17, indicating that the negative impact of rising U.S. Treasury yields on Bitcoin is relatively limited; during the same period, the correlation coefficient between gold and the 10-year U.S. Treasury yield was -0.41. Analysts suggest that this indicates Bitcoin's linkage to bond market forces is weaker than that of gold, and under an environment of rising expectations for fiscal risk and financial repression, its "hard asset" characteristics may become more prominent. (Investing)