Grayscale researcher Zach Pandl stated that Bitcoin is experiencing a new regime change and is seen as digital gold.

Zach Pandl, research manager at Grayscale, said in his latest study that "there is a new regime change" in Bitcoin. Stating that the largest cryptocurrency has been acting like a technology stock for a long time, Pandl said, “Now investors have started to see it as a digital gold again.”

“It dropped from 60% to 33%, gold went from zero to 50%”

Stating that Bitcoin acted like Nasdaq and risky technology stocks, especially during the harsh volatility period last year, Pandl stated that the 90-day Nasdaq correlation has now changed:

"Bitcoin's 90-day correlation with Nasdaq dropped from over 60% to 33%. However, while the correlation with gold was close to zero at the beginning of the year, it has risen above 50% today."

As it is known, Bitcoin is sometimes described as "digital gold" and sometimes as "very high-risk asset". The fact that the largest cryptocurrency takes actions that fit all these analogies also proves both sides right.

“Debasement Trade” is here again…

Pandl stated that Bitcoin also stands out in the purchases made despite the depreciation of the currency, known as "Debasement Trade" in the USA, which has been very pronounced in recent years:

"Investors now think that the debt of states has increased more than necessary. Therefore, fears that fiat money will lose value over time are also increasing. This causes the interest in gold and Bitcoin, another limited asset, to grow. Bitcoin and other digital assets with limited supply may come to the fore in portfolio diversification again. This may put them in a period where they are preferred against the loss of value of money."