Bitcoin's 90-day correlation with gold has climbed above 50%, reaching its highest level since 2020, while its correlation with the Nasdaq has fallen substantially, according to data cited by Coin Bureau on X from Bitwise.

The shift marks a notable change in Bitcoin's relationship with major traditional assets. Bitwise's figures show that the cryptocurrency's correlation with the Nasdaq has declined to 33% from more than 60%, while its correlation with gold has moved in the opposite direction.

Bitcoin's Correlation With Gold at Highest Level Since 2020

The latest reading places Bitcoin's relationship with gold at levels last seen during the extraordinary market conditions of 2020. That period was defined by the economic shock caused by the COVID-19 pandemic, followed by unprecedented fiscal and monetary stimulus that affected asset prices across global markets.

Historically, Bitcoin's correlation with gold has fluctuated rather than maintained a consistent relationship. Research from VanEck found that the correlation between the two assets increased significantly during the March 2020 market turmoil, illustrating how Bitcoin's behavior can change depending on broader financial conditions.

The renewed increase is particularly relevant as investors continue to assess Bitcoin's role within diversified portfolios. Gold has traditionally been viewed as a defensive asset, while Bitcoin has often traded more closely with risk-sensitive assets, including technology equities. The correlation shift comes amid a period in which gold itself has drawn strong investor interest, with central banks around the world having been persistent buyers of the metal in recent years and spot gold prices having set successive record highs.

Bitcoin-Nasdaq Correlation Drops to 33%

The decline in Bitcoin's Nasdaq correlation provides a contrasting development. From above 60%, the relationship has now fallen to 33%, indicating that Bitcoin's recent price movements have become less synchronized with the technology-heavy U.S. equity benchmark.

That change could affect how institutional investors evaluate Bitcoin's diversification characteristics. A weaker relationship with equities, combined with a stronger short-term correlation with gold, may reinforce arguments for viewing Bitcoin through a different lens than conventional growth-oriented assets. Institutional exposure to Bitcoin has grown considerably since U.S. regulators approved spot Bitcoin exchange-traded funds in January 2024, giving traditional investors a regulated vehicle for allocating to the asset and making correlation behavior a more prominent part of portfolio analysis.

However, correlation measurements are dynamic and can change rapidly as market conditions shift. The current 90-day reading therefore does not establish a permanent change in Bitcoin's market identity.

The key question for investors is whether the elevated correlation with gold will persist while Bitcoin remains less aligned with the Nasdaq, or whether the two relationships will move back toward their previous patterns as macroeconomic conditions evolve. Upcoming macroeconomic data releases and central bank policy decisions are among the factors market participants typically monitor when assessing shifts in cross-asset correlations.

Source: Hokanews. Written by Victoria Hale, Technology & Blockchain Writer.