Bitcoin-gold correlation hits six-year high amid debasement fears

The correlation between Bitcoin and gold has surged to its highest level in six years, reflecting mounting concerns over currency debasement. This development, reported by Zero Hedge, highlights a significant move in financial markets as both assets are seen as hedges against declining fiat currency value. Data from Bitwise indicates that Bitcoin’s 90-day rolling correlation with spot gold exceeded 0.5 by the end of August 2026, a level not seen since 2020. This shift suggests market participants are increasingly viewing Bitcoin alongside gold as a store of value amidst macroeconomic uncertainties. Current market data shows gold around $4,540 per ounce, while Bitcoin fluctuates between $78,500 and $80,800. As Bitcoin shows a stronger correlation with gold, its correlation with equities, such as the Nasdaq 100, has decreased significantly, down to approximately 33% from 60% earlier in the year. This trend is consistent with a broader market sentiment that favors hard assets over traditional equities amid fears of inflation and economic instability. The market for gold to hit $15,000 by the end of December 2026 currently reflects low odds, with YES shares priced between 1.5% and 10.5...