Bitcoin's Correlation with Nasdaq Drops from 60% to 33%

Grayscale research manager Zach Pandl noted that Bitcoin may experience a regime change. He stated that Bitcoin has long behaved like a technology stock, but investors are now beginning to see it as digital gold. Pandl explained that Bitcoin's 90-day correlation with Nasdaq has dropped from 60% to 33%, while its correlation with gold has risen from near zero at the beginning of the year to over 50%. He also emphasized that Bitcoin has stood out in purchases made against currency devaluation, known as the 'Debasement Trade.' Pandl mentioned that investors believe government debt is increasing and fears of fiat currency devaluation are rising, which has heightened interest in gold and Bitcoin. He expressed that Bitcoin and other limited digital assets could become significant for portfolio diversification.

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