Bitcoin may outperform gold, stocks into year-end amid risk-asset tailwinds

Block Scholes research analyst Habib Rahman said Bitcoin could outperform gold and stocks as seasonal factors in November and December historically favor risk assets, according to Crypto Briefing. Bitcoin’s 90-day correlation with gold has risen to 54%, the highest since 2014, while its correlation with the Nasdaq 100 fell to 33% from 59% in February, nearing the lowest level in about a year. Bitcoin’s correlation with the U.S. dollar index also turned the most negative since early 2023. Rahman said the shift in correlations began in June and accelerated after the U.S. Treasury announced in August that it would expand its Treasury buyback program to curb a rise in long-term yields. In the following week, Bitcoin posted its biggest weekly gain since March 2024, while gold rose 5%. Rahman added that with the U.S. midterm elections approaching, November and December have historically been favorable months for risk assets, pointing to the potential for additional relative strength in cryptocurrencies.