Bitcoin (BTC) appears to be growing more correlated with gold bullion as markets are gyrated by geopolitical events and volatility in the bond market.
TradingView data shows that Bitcoin’s 30-day correlation with gold has climbed to +0.81, indicating a strong tendency for the two to move in tandem with each other.
At the same time, Bitcoin’s relationship with the U.S. dollar has fallen to -0.86, a sign it’s moved in the opposite direction of the American currency.
There are also signs that Bitcoin’s link with the Nasdaq Composite (NDAQ) index and technology stocks is weakening.
For crypto advocates, news that Bitcoin is trading closer to gold than stocks or currencies is welcome news.
Crypto bulls have long argued that Bitcoin’s appeal is as a store of value and a hedge against fiscal and monetary upheavals, similar to the appeal of gold.
For years that was not the case and Bitcoin and other cryptocurrencies moved more inline with technology stocks than other asset classes.
However, that now appears to be changing as concerns grow about the U.S. fiscal situation after America’s debt recently hit $40 trillion U.S.
Treasury yields, which influence borrowing costs across the U.S. economy, have risen to their highest level in nearly 20 years, causing gyrations in the stock market.
The situation has sent investors back into both Bitcoin and gold, with both assets rising sharply over the past 10 days. Gold’s price is up 14% in August.
Bitcoin and gold have also gotten a boost from ongoing worries about instability in the Middle East and the independence of the U.S. Federal Reserve.
BTC is trading at $79,400 U.S. on Aug. 28, having risen more than 25% during the month.
