Bitcoin has experienced a notable increase, reaching $80,000. Citi analysts indicate that this cryptocurrency now correlates more with gold than with stock indices like the S&P 500.
The bitcoin has recorded a sharp rise, going from approximately $60,000 to $80,000, which has caused a shift in market references, according to information published by Citi. This change implies that, instead of stock indices like the S&P 500 and the Nasdaq, gold has become a new benchmark for cryptocurrency investors.
Citi's report highlights that the main macroeconomic factor affecting cryptocurrencies has changed, noting that “the main factor has shifted from equities to gold.” This change has manifested during a period when bitcoin had been stagnant for over two months around $60,000 before its recent jump.
During the month of August, bitcoin experienced a rally of up to 30%, coinciding with a 15% increase in the price of gold. This parallelism has intensified since the central banks' meeting in Jackson Hole, where the Federal Reserve chairman adopted a more aggressive tone. Since then, both bitcoin and gold have seen declines of 3% in their values.
Fears surrounding debt have been identified as the root of this new correlation. Citi points out that the announcement of debt buybacks by the U.S. Treasury has strengthened the narrative about dollar devaluation, which in turn has caused correlations between cryptocurrencies and equities to decrease in recent months.
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