Bitcoin's Treasury-Led Rally Bolsters Digital Gold Case

U.S. Treasury intervention has driven Bitcoin's correlation with gold to a six-year high, with Bitcoin posting its strongest weekly gain since March 2024 at 22.4%, supporting its "digital gold" narrative. Bitwise data shows Bitcoin's three-month rolling correlation with gold peaked near 2020 pandemic levels, while its correlation with U.S. stocks fell to a one-year low, particularly against the Nasdaq 100. Bitcoin also showed significant negative correlation with the U.S. dollar index. Analysts note Bitcoin remains distinct from gold as a younger asset class, but its valuation logic may shift toward the $30 trillion gold market if the strong correlation persists, prompting investors to hold both as hedges.