Bitcoin's Correlation With Gold Is Suddenly on the Upswing. Are Investors About to See the Return of Bitcoin as "Digital Gold"?
The coin's track record against gold isn't very reassuring.
On August 19, the U.S. Treasury Department announced plans to double its purchases of 10- to 30-year debt, a move that immediately caught the market's attention. In response, Bitcoin (BTC) began to climb in value, alongside the SPDR Gold Shares ETF (GLD), which is designed to mirror the price of gold. This is a significant shift, as these two assets had previously often moved independently in response to economic stimuli, such as changes in government actions impacting the money supply.
CryptoQuant's chief executive, Ki Young Ju, noted in mid-August that Bitcoin's correlation with gold had reversed course, going from a negative relationship in early 2026 to a strongly positive one. This development has sparked speculation about whether the "digital gold" theory about Bitcoin is resurfacing. If this is indeed the case, what implications could it have for investors?
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