The Kobeissi Letter reports that Bitcoin's 90-day correlation with gold has risen to +0.50, nearly matching the pandemic-era peak of 2020, more than doubling since the start of the year. The acceleration follows the U.S. Treasury's August 19 announcement to double the size of its long-term Treasury buyback program from $2 billion to $4 billion per operation. Meanwhile, Bitcoin's correlation with the Nasdaq 100 has dropped to around 0.30, a one-year low, as investors increasingly view both assets as hedges against currency debasement.
According to The Kobeissi Letter, Bitcoin and gold are moving more and more in lockstep. Their 90-day correlation has climbed to +0.50, almost level with the all-time high hit during the 2020 pandemic, and that is more than double where it stood at the start of the year.
For comparison, in the rebound after the 2022 bear market, that 90-day correlation reached +0.30. The newsletter said this latest jump in correlation came after the U.S. Treasury announced on August 19 that it would at least double the size of its long-term Treasury buyback program, lifting the per-operation amount from $2 billion to $4 billion.
At the same time, Bitcoin's 90-day correlation with the Nasdaq 100 has slipped to about 0.30, a one-year low. The Kobeissi Letter said investors are increasingly using both gold and Bitcoin as hedges against currency debasement.
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