Bitcoin and Gold 90-Day Correlation Rises to 0.50, Nearing 2020 High

The Kobeissi Letter said Bitcoin and gold are moving more closely in tandem, with their 90-day correlation rising to +0.50, nearly matching the record high set during the 2020 pandemic period. According to ChainCatcher, the figure has more than doubled since the start of the year. The account said the correlation had previously climbed to +0.30 after the 2022 bear market recovery. It added that the recent acceleration came after the U.S. Treasury announced on August 19 that it would at least double the size of its long-term bond buybacks, raising each operation from $2 billion to $4 billion. At the same time, Bitcoin's 90-day correlation with the Nasdaq 100 has fallen to about 0.30, a one-year low. The account said investors are increasingly using both gold and Bitcoin as hedges against currency debasement.