Bitcoin Correlation With Gold Hits Highest Level Since 2020

Bitcoin is showing a stronger relationship with gold while appearing less sensitive to rising U.S. Treasury yields, according to market data cited by Coin Bureau from CoinDesk. The shift comes as investors focus increasingly on fiscal risks and the outlook for government debt.

The 90-day correlation between Bitcoin and gold has climbed to 0.59, its highest level since 2020. At the same time, Bitcoin's 90-day correlation with the U.S. 10-year Treasury yield stands at -0.17, compared with -0.41 for gold.

Bitcoin and Gold Diverge as Treasury Yields Rise

The latest figures highlight an unusual divergence between the two assets. Both have increasingly traded as scarce assets amid concerns over fiscal conditions, but their reactions to the bond market have differed.

CoinDesk reported that Bitcoin's relationship with the 10-year Treasury yield is now only mildly negative, while gold has shown a substantially stronger inverse relationship. A rising Treasury yield generally increases the opportunity cost of holding assets that do not generate cash flows, creating pressure on traditional stores of value such as gold.

Recent markets conditions provide a broader backdrop. The U.S. 10-year Treasury yield climbed to about 4.8% earlier this month, its highest close since 2023, as inflation concerns and expectations surrounding Federal Reserve policy pushed borrowing costs higher. Bitcoin nevertheless remained relatively resilient during the move.

CoinDesk's analysis also found that Bitcoin and gold have been rising together as concerns about the fiscal position of advanced economies have become more prominent. The correlation between the two assets is now at its strongest level in years, reinforcing the growing market narrative around Bitcoin as a potential hard-asset alternative.

Fiscal Risks Put Bitcoin's Market Role in Focus

The distinction is important for investors assessing how digital assets behave when conventional markets come under pressure. A weaker relationship financial with Treasury yields could allow Bitcoin to respond differently from gold when bond-market volatility intensifies, although correlation measures alone do not establish a permanent relationship.

The next test will come as investors assess upcoming U.S. inflation data and the Federal Reserve's September policy decision. Those events could provide a clearer indication of whether Bitcoin's recent resilience to higher yields represents a durable shift or a temporary market pattern.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.