Kobe's letter: The 90-day correlation between Bitcoin and gold rises to 0.50

The Kobeissi Letter stated that the price trends of Bitcoin and gold are increasingly synchronized. The 90-day correlation between Bitcoin and gold prices has risen to +0.50, nearly matching the historical high reached during the pandemic in 2020, and this value has more than doubled since the beginning of the year.

In contrast, after the recovery from the 2022 bear market, this 90-day correlation had risen to +0.30. The account noted that the recent acceleration in correlation occurred after the U.S. Treasury announced on August 19 that it would at least double the scale of long-term Treasury bond repurchases, increasing from $2 billion to $4 billion per transaction.

Meanwhile, the 90-day correlation between Bitcoin and the Nasdaq 100 index has dropped to about 0.30, a one-year low. The account indicated that investors are increasingly viewing both gold and Bitcoin as tools to hedge against currency depreciation.