Bitcoin Shows Greater Immunity to Bond Market Volatility, Hard Asset Characteristics May Outshine Gold

Odaily News – As concerns over the fiscal health of developed economies intensify, gold and Bitcoin have strengthened 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 more "immune" to bond market volatility. Data shows that the 90-day correlation coefficient between BTC and the yield on 10-year US Treasury bonds is only -0.17, implying that rising US Treasury yields have a relatively limited negative impact on Bitcoin; during the same period, the correlation coefficient between gold and 10-year US Treasury yields stands at -0.41. Analysts suggest that this indicates Bitcoin is less tied to bond market forces than gold, and amid rising expectations of fiscal risk and financial repression, its "hard asset" characteristics may become more pronounced. (Investing)