Bitwise: Bitcoin Correlates with Gold at Record Levels

The three-month correlation between Bitcoin and gold has reached its highest level since 2020. Bitcoin has risen by 22.4% over the week, while gold has increased by approximately 5%. Bitwise's Director of Research in Europe, Andre Dragosh, noted that Bitcoin is exhibiting properties of a safe-haven asset amid risks of dollar depreciation. August has been a significant month for macroeconomic markets, as U.S. Treasury Secretary Scott Bessent increased purchases of long-term bonds. Dragosh emphasized that the high correlation between Bitcoin and gold was observed following extensive fiscal stimulus during the COVID-19 pandemic. The correlation of Bitcoin with the stock market has dropped to a yearly low, indicating a divergence in dynamics. There is also a negative correlation between Bitcoin and the U.S. Dollar Index (DXY). Dragosh believes that Bitcoin may transition from a category of risk assets to assets for hedging currency depreciation, which would alter the demand structure for cryptocurrency.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.