Bitcoin, 50% Correlation with Gold…Can It Become a Hedge Against Currency Devaluation?

▲ Bitcoin (BTC), Gold/AI Generated Image ©

While Bitcoin (BTC) maintained above $77,000, increasing its correlation with gold, Arbitrum (ARB) and Pyth Network (PYTH) emerged as market leaders, continuing their strong upward momentum.

According to investment specialist media FXStreet on September 3 (local time), Bitcoin's 90-day correlation with Nasdaq recently decreased from approximately 60% to 33%, while its correlation with gold rose to about 50%. This shift is attributed to investors turning their attention to Bitcoin and gold as hedges against currency devaluation, as the US national debt surpassed $40 trillion, accompanied by ongoing fiscal deficits and rising bond yields.

The US government's decision to double the size of its long-term Treasury buyback program from $2 billion to $4 billion per transaction has raised the possibility of lower interest rates in the short term. However, in the long term, increasing government debt remains a burden. The media evaluated that the strengthened synchronization between Bitcoin and gold amidst trades hedging against currency devaluation supports Bitcoin's long-term growth rationale as a scarce digital asset.

Bitcoin traded near $77,328 on Thursday. The price remained above the 50-day, 100-day, and 200-day exponential moving averages clustered between $69,400 and $72,400, and also above the Fibonacci 50% retracement level of $75,233 from the $57,800-$97,924 decline, maintaining a short-term bullish structure. The Relative Strength Index (RSI) was at 65, indicating remaining upward momentum but retreating from overbought levels, while the Moving Average Convergence Divergence (MACD) falling below its signal line increased the likelihood of short-term consolidation. Resistance levels on the upside are $87,476 and $97,924, while support levels on the downside are $75,233 and the $69,395-$72,365 range.

Arbitrum rose over 5% on Thursday, continuing its 12% surge from the previous day. The price moved above the 50-day, 100-day, and 200-day exponential moving averages, testing a breakout of the Fibonacci 78.6% retracement level at $0.1272. A decisive break above this price could lead to a rise to $0.1495. While the Moving Average Convergence Divergence (MACD) indicated strengthening upward momentum, the Relative Strength Index (RSI) entered the overbought zone at 76, suggesting a potential slowdown in the pace of ascent. Key support levels on the downside are $0.1164 and $0.1026.

Pyth Network rose 3% on Thursday, extending its recovery for four consecutive trading days following a 10% surge the previous day. The price stably remained above the 200-day exponential moving average of $0.0499, and the broken downtrend line converted into a new support level at $0.0552. The Relative Strength Index (RSI) entered the overbought zone at approximately 75, but the Moving Average Convergence Divergence (MACD) maintained its upward trend. If buying pressure continues, the next resistance levels are $0.0631 and $0.0737; in case of a correction, $0.0552 and $0.0499 will determine the continuation of the uptrend.

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