As fiscal concerns over developed economies rise, both gold and bitcoin have strengthened. The 90-day correlation between BTC and gold reached 0.59, the highest since 2020. However, bitcoin's correlation with the 10-year Treasury yield is only -0.17, compared to gold's -0.41, indicating bitcoin is less tied to bond market dynamics, potentially strengthening its case as a hard asset.
As fears about the fiscal condition of developed economies get louder, gold and bitcoin have both climbed together. Data from Investing shows the 90-day correlation coefficient between BTC and gold daily returns has reached 0.59, its highest mark since 2020.
But bond market volatility tells a different story. Bitcoin looks tougher there. The 90-day correlation between bitcoin and the U.S. 10-year Treasury yield is only -0.17, which suggests higher Treasury yields have a fairly limited negative effect on bitcoin. Gold, by comparison, has a -0.41 correlation with that same Treasury yield, a much stronger negative link.
Analysts say that split suggests bitcoin is less connected to bond market pressure than gold. And as fiscal risks build and expectations of financial repression rise, bitcoin’s “hard asset” traits may stand out more sharply, possibly moving ahead of gold on that front.
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