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<a href="https://xpertsstudio.com/glassnode-bitcoin-supply-clusters-align-with-liquidations/” title=”Glassnode: Bitcoin Supply Clusters Align with Liquidations”>Bitcoin(CRYPTO: BTC) is increasingly trading like digital gold, a shift Bitwise Europe Research Director André Dragosch says reflects changing investor perceptions of BTC.
Is Bitcoin Decoupling From Stocks?
In Bitwise’s weekly investor memo published Wednesday, Dragosch pointed to August’s market reaction following rising long-term Treasury yields and intervention by U.S. Treasury Secretary Scott Bessent as rationale for his thesis.
Bitcoin surged 22.4% in its strongest week since March 2024, while gold gained about 5% despite falling stocks, pushing their three-month correlation to its highest level since the 2020 pandemic stimulus era.
The shift isn’t limited to Bitcoin’s relationship with gold.
Dragosch noted that BTC’s correlation with stocks has fallen to a one-year low, challenging the argument that Bitcoin simply behaves like a leveraged technology investment.
Correlation with the U.S. Dollar Index, meanwhile, is significantly negative.
This suggests dollar weakness has increasingly benefited both BTC and gold, and investors are grouping the two assets together when concerns about monetary policy, government debt and currency debasement intensify.
Will BTC Become the ‘Amplified Version of Gold?’
Dragosch stressed that Bitcoin and gold remain fundamentally different assets.
Gold has served as a store of value for thousands of years, while Bitcoin is a technology less than two decades old and remains considerably more volatile.
But during periods of intense macroeconomic stress, investors appear to be making less distinction between the two.
“In those scenarios, BTC has recently started to look like an amplified version of gold,” Dragosch wrote, potentially having implications for Bitcoin’s potential addressable market.
Gold’s roughly $30 trillion market is supported by central banks, sovereigns and large institutional allocators, a substantially larger capital pool than the crypto-native and venture capital that historically helped price Bitcoin.
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