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Bitcoin Trades More Like Gold, Bolstering Digital Gold Case

Bitcoin trades like gold as tech correlation drops to one-year low

  • Bitcoin‘s 90-day correlation with Gold climbed to its highest level since 2020, while its correlation with the Nasdaq-100 fell to a one-year low.
  • BTC surged 22.4% in one week, far outpacing gold’s 5% gain, strengthening its “digital gold” narrative.
  • The US Treasury plans to increase long-term bond buybacks starting September 9, a move Bitwise says could make Bitcoin more attractive alongside gold.
  • Bitcoin’s 90-day correlation with the US Dollar Index stood at -0.35, indicating the two assets moved in opposite directions.

Bitwise has released new research showing that Bitcoin is increasingly trading like gold rather than a tech asset, strengthening its long-running “digital gold” case. According to a memo from Bitwise Director and Head of Research André Dragosch, Bitcoin’s 90-day correlation with gold reached its highest point since 2020 during a volatile period in global markets.

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Bitcoin gained 22.4% over the past week, its strongest weekly performance since March 2024, while gold rose about 5% during the same period. Meanwhile, Bitcoin’s 90-day correlation with the Nasdaq-100 fell to around 0.33, a one-year low, signaling a weakening relationship with high-risk tech assets.

Bitwise also noted that Bitcoin’s 90-day correlation with the US Dollar Index stood at -0.35, showing the two assets moved in opposite directions. “It is notable since Bitcoin has often traded like a high-risk tech asset,” Dragosch said, adding that the latest data suggests this relationship may now be weakening.

Bitcoin has outperformed gold over the past three months, rising 30.59% versus gold’s 2.62% gain, though its higher volatility remains evident. Bitcoin was trading at $79,978 at the time of writing, with retail sentiment on Stocktwits remaining neutral.

The research comes as the US Treasury prepares to increase its long-term bond buybacks from $2 billion to at least $4 billion per operation starting September 9. Bitwise argued that periods of stronger government intervention and concerns about traditional currency values could make Bitcoin more attractive alongside gold.

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