Bitcoin's Correlation with Gold Rises to Over 50% Amid Rising Debt Concerns
According to Grayscale research, Bitcoin’s 90-day correlation with gold has risen above 50%, up from near zero at the start of 2026. This shift marks a departure from its earlier high-beta behavior linked to AI-driven market trends and reflects renewed investor interest in Bitcoin as a store of value amid growing concerns over U.S. federal debt levels. The report attributes this trend, dubbed the 'debasement trade,' to rising U.S. gross federal debt which recently surpassed $40 trillion. Grayscale's Head of Research Zach Pandl suggests that persistent deficits and higher long-term Treasury yields are prompting investors to seek scarce assets like Bitcoin outside traditional government bond markets. Both gold and Bitcoin remain below their all-time highs, with Bitcoin trading at approximately $79,457 and gold near $4,613 per ounce. The 0.5 correlation between the two is now its second-highest on record.
Topics: Bitcoin correlation analysis debt fears gold store of value