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      Bitcoin's Correlation with Gold Surges as Ties to Nasdaq Weaken

      Bitcoin's correlation with the Nasdaq 100 has significantly decreased, dropping to approximately 33% over the past 90 days, down from over 60% earlier in 2026. In contrast, its correlation with gold has reached record levels, exceeding 50% on a 90-day basis and hitting 0.8 on a 30-day measure as of September 1. This shift indicates a changing perception of Bitcoin among institutional investors, who are increasingly viewing it as a digital equivalent to gold.

      The timing of this realignment coincides with the U.S. gross federal debt surpassing $40 trillion in mid-August 2026, alongside a projected annual fiscal deficit of around $1.9 trillion. As governments face substantial fiscal challenges, investors are turning to assets that cannot be easily produced, such as gold and Bitcoin, which has a capped supply of 21 million coins. Bitcoin's price also saw a notable increase of 28% in August, trading between $77,000 and $80,000, further aligning it with gold's performance during a period of economic uncertainty.

      Institutional interest in Bitcoin is reflected in substantial capital flows, with Bitcoin ETF inflows reaching nearly $1 billion in a single week. BlackRock's IBIT has attracted $1.2 billion year-to-date, indicating that large institutions are making strategic asset allocation decisions rather than engaging in speculative trading. This trend positions Bitcoin alongside gold in investment portfolios, particularly as a hedge against currency debasement.

      While the current correlation shift is significant, it is important to note that Bitcoin remains more volatile than gold. A major market downturn could still impact both assets similarly. However, the increasing institutional investment and the rising correlation with gold suggest that Bitcoin's market potential is expanding, with significant implications for long-term investors.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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