Bitcoin Shifts to Positive YTD, Solidifying Its Digital Gold Status

Bitcoin (BTC) has turned positive year-to-date, trading near $95,000 after bouncing back from a significant drop of 18%. With this recovery, Bitcoin is now marginally up by 1.5% since the beginning of the year.

The cryptocurrency’s performance places it between gold, which has risen 24% YTD, and the Nasdaq 100, which has fallen 7%. This shift further supports the growing narrative of Bitcoin as digital gold, contrasting its earlier characterization as a volatile tech stock.

A closer look at Bitcoin’s correlation with other assets reveals a notable trend. The cryptocurrency’s 30-day moving average correlation with gold now stands at 0.70, suggesting a stronger alignment with the traditional store of value. In comparison, its correlation with the Nasdaq 100 has dropped to 0.53, reflecting Bitcoin’s growing divergence from tech equities. Correlation values range from 1, indicating a perfect match, to -1, representing an inverse relationship.

Bitcoin’s rally last week, a 10% increase, marked its best weekly performance since November 17, following the election results under President Trump. This surge has helped boost investor confidence, signaling that Bitcoin may be seen more as a hedge against economic uncertainty.

With ongoing trade tensions and rising tariffs, global markets remain on edge. U.S. tariffs on Chinese goods have surged to 145%, leading to reduced shipping demand, as reported by Bloomberg. Retail giants like Walmart have warned that inflation and empty shelves could impact the economy, reminiscent of the challenges seen during the pandemic’s peak.