Bitcoin's Correlation with Gold Surges Amid Macro Uncertainty
Bitcoin's role as 'digital gold' is strengthening, with its correlation to precious metals rising sharply to over 0.85. This indicates Bitcoin's increasing utility as a hedge against macroeconomic uncertainty and inflation, mirroring gold's historical function.
Data shows this correlation has dramatically increased from -0.8 in October 2021, nearing its all-time high. This trend highlights sustained demand for inflation hedges, especially as gold and silver have recently reached record highs, fueled by geopolitical risks and economic instability.
This movement is driven by the 'debasement trade'—investing in assets that hedge against loss of purchasing power due to inflation. Bitcoin's programmatic scarcity and institutional adoption solidify its position as a key store-of-value asset.


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