Ever since its inception roughly 16 years ago, bitcoin’s fundamentals have been compared to gold due to some similarities, such as finite supply. BTC maxis went even further along the way, which was supported by TradFi experts and regulators who categorized the cryptocurrency as a commodity, just like gold.
If that’s the case, then the two should move in sync, right? Such identical moves have occurred in the past, but that hasn’t been the case since the October 10 massacre, as shown by new data from the Kobeissi Letter.
Gold Link Broken
The gap in performance between the two began after the massive crash mentioned above. At the time, BTC plunged from over $121,000 to $101,000 on some exchanges in the span of just hours, a move that wiped out over $19 billion in leveraged positions.
Since then, the cryptocurrency’s situation has only worsened, as it dipped to a six-month low of $93,000 yesterday. In contrast, the precious metal has marked some gains and even managed to tap a new all-time high in the meantime. As such, the Kobeissi Letter determined that after more than 12 months, during which the two assets moved in high correlation as safe havens, the link had broken.
Still not convinced?
Take a look at the chart of Bitcoin versus Gold since the October 10th liquidation occurred.
For 12+ months, Gold and Bitcoin moved with high correlation; the safe haven assets.
Since early-October, Gold has outperformed Bitcoin by 25 percentage points. pic.twitter.com/cMd17JFGuL
— The Kobeissi Letter (@KobeissiLetter) November 16, 2025
The analysts believe the main reason behind BTC’s nosedive, as well as its entirely different moves compared to gold, is the amount of excessive leverage used in the crypto markets.
US Tech Sector Link Grows
At the same time, the Kobeissi Letter noted another growing positive correlation with a different asset class – the US technology sector. The 30-day correlation between BTC and the Nasdaq 100 Index reached its highest level in over three years at 0.80. It’s also the second-highest in the past 10 years.
Over the past five years, the correlation has been positive except for a brief period in 2023. Consequently, BTC’s 5-year correction to the Nasdaq has exceeded 0.5, while its relationship with cash and gold has been “essentially zero.”
“Bitcoin is increasingly behaving like a leveraged tech stock,” concluded the Kobeissi Letter.