Bitwise says BTC-gold correlation hits near 6-year high as debasement hedge gains traction

Bitcoin’s three-month rolling correlation with gold has climbed to its highest level in about six years, suggesting investors are increasingly using BTC alongside gold as a hedge against currency debasement risk, according to a CoinNess analysis citing Bitwise Europe Head of Research André Dragosch. The analysis said BTC rose 22.4% on a weekly basis and gold gained about 5%, while stocks fell, after yields on long-dated U.S. Treasuries climbed and the U.S. Treasury increased purchases of long-term government bonds. Over the same period, Bitcoin’s correlation with stocks fell to its lowest level in a year, while its correlation with the U.S. Dollar Index (DXY) showed a clear negative reading. Dragosch said BTC and gold often move differently under normal conditions, but investors are increasingly treating the two assets similarly when macroeconomic factors have a strong influence. Investors are now using both gold and BTC, rather than choosing one over the other, as hedges against currency debasement, Dragosch added.