Bitcoin's 90-day correlation with gold climbed above 50%, up from near zero at the start of 2026, while its correlation with the Nasdaq 100 fell from above 60% to approximately 33%, according to a research note published by Grayscale on Aug 27.
Grayscale Head of Research Zach Pandl has noted that over the past year, amid the artificial intelligence investment boom, Bitcoin had been trading like a high-beta asset, meaning greater price volatility relative to the broader market, but recent signals suggest a shift in that dynamic.
Grayscale frames the shift as a rotation Pandl describes as the return of the "debasement trade", renewed investor focus on Bitcoin's scarcity, monetary independence, and role as a store of value. The 90-day figures are drawn from a rolling window and are backward-looking.
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"The regime change comes as the macro backdrop is once again bringing the debasement trade into focus. U.S. federal debt recently crossed $40 trillion, while the long end of the Treasury curve has sold off meaningfully over the past year," Pandl wrote in his report.
U.S. gross federal debt crossed $40 trillion on Aug 18, reaching approximately $40.05 trillion, according to Treasury Department data. The total reached about $40.10 trillion by Aug 25.
The Congressional Budget Office projects a $1.9 trillion federal deficit for fiscal 2026 and expects annual deficits to expand under current law as interest costs, mandatory spending and borrowing requirements increase.
The 90-day correlation between gold and Bitcoin now sits around 0.5, its second-highest level on record. Longer term, since 2010, the correlation between the two assets is close to zero.
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Both assets are still below the all-time highs they set last year, gold by about 14% and Bitcoin by about 37%.
According to Decibel, Bitcoin was trading at approximately $79,457 at the time of writing. Gold was near $4,613 per ounce, as per Fortune.
Pandl argued that persistent deficits and higher long-term yields could encourage investors to seek scarce assets outside the government bond market.
"Larger debt balances, persistent deficits, and higher long-term yields have renewed the search for assets that can help hedge against deteriorating fiscal and monetary fundamentals," he wrote.
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This story was originally published by TheStreet on Aug 28, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.