Key Takeaways
Bitcoin's correlation with gold reached a six-year high amid currency debasement fears and U.S. debt interventions, according to Bitwise.
According to Bitcoin Magazine, bitcoin's correlation with gold has reached a six-year high as investors seek hedges against currency debasement. A report from Bitwise indicates that the leading cryptocurrency and the precious metal are trading in lockstep following material interventions in the macro picture by the U.S. government.
Bitwise's European Head of Research, André Dragosch, noted that the correlation was last this high in 2020 following Covid-19 stimulus. Meanwhile, bitcoin's correlation with the stock market has dropped to a one-year low, pointing to a decoupling between hard assets and equities.
The shift follows an announcement by the U.S. Treasury Department that it would more than double government debt repurchases to rein in long-term borrowing costs, alongside news that U.S. public debt exceeded $40 trillion for the first time. The dollar's value slid following the announcements, driving investors toward gold and bitcoin as a debasement trade. Following a recent price surge, bitcoin traded near $81,438 after jumping nearly 6% over a 24-hour period.
Source & Fact-Check Note
This report is synthesized from coverage by Bitcoin Magazine. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
Read original article at Bitcoin Magazine ↗
