Grayscale: Bitcoin-Gold Correlation Breaks 50%, Inflation Trade On or Back to Relationship

BlockBeats News, August 28th, Grayscale's Director of Research Zach Pandl stated that over the past year, during the AI-driven risk asset rally, Bitcoin's trading performance has been closer to high-beta assets, but this status may be reversing. The 90-day correlation between Bitcoin and the Nasdaq 100 Index has dropped from over 60% to around 33%, while the correlation with gold has risen from slightly above 0 at the beginning of the year to over 50%.

Grayscale believes that this change may indicate that investors are re-focusing on Bitcoin's scarcity, monetary independence, and store of value functions. Meanwhile, the U.S. federal debt has recently surpassed $40 trillion, with ongoing fiscal deficits and rising long-term Treasury yields, causing the market to once again consider assets that can hedge against deteriorating fiscal and monetary fundamentals.

Pandl pointed out that Bitcoin has no central issuer, transparent issuance rules, and a maximum supply cap of 21 million coins. In an environment where the purchasing power of fiat currency is being reevaluated in the long term, Bitcoin can serve as a scarce and more liquid alternative asset outside of gold. Bitcoin and other scarce digital assets may be entering a more favorable market phase.