Bitcoin Aligns with Tech Stocks More Than Gold, Franklin Templeton Report Finds

A recent report from Franklin Templeton Digital Assets reveals that Bitcoin behaves more like tech stocks than the often-cited "digital gold." The analysis, titled “When Gold Zigged, Bitcoin Moonwalked,” challenges the narrative that Bitcoin mirrors gold’s safe-haven qualities. By examining three years of market data, the report highlights Bitcoin’s stronger alignment with the Nasdaq index, while its connection to gold remains limited.

The study found that Bitcoin’s price correlation with gold rarely surpasses 0.3 over 90-day periods, indicating the two assets typically move independently. In contrast, Bitcoin’s correlation with the Nasdaq has reached as high as 0.7 during the same timeframe, suggesting a closer tie to technology-driven equities. While global events occasionally cause Bitcoin and gold to move in tandem, these moments are exceptions rather than the norm. The report attributes this divergence to gold’s centuries-long history of institutional adoption and market stability, compared to Bitcoin’s newer, more volatile presence in portfolios.

Market Dynamics and Recent Trends

Several factors explain Bitcoin’s stronger link to tech stocks, according to Franklin Templeton’s findings. Bitcoin remains influenced by regulatory shifts, technological advancements, and speculative trading, which align it more closely with the tech sector’s dynamics. Gold, with its deep liquidity and established role as a hedge, operates in a more predictable framework. This difference in market maturity shapes how each asset responds to economic changes.

Recent market activity underscores these findings. Bitcoin surged past $83,000 on Friday after U.S. Producer Price Index data came in at 2.7%, below the expected 3.3%, fueling optimism among crypto traders. Despite this rally, major stock indexes like the S&P 500 and Nasdaq showed little movement, reflecting concerns over U.S.-China tariff tensions. Bitcoin’s volatility spiked earlier in the week following President Trump’s tariff announcements, briefly dipping below $80,000 before rebounding, further aligning its behavior with equity markets.

Gold, meanwhile, climbed to a record $3,207 per ounce as investors sought safety amid the same trade tensions, reinforcing its traditional role. The precious metal’s 20% gain this year far outpaces most assets, highlighting its stability compared to Bitcoin’s swings. At the time of the report, Bitcoin traded around $82,600, up 4% in 24 hours, yet its tech-like volatility sets it apart from gold’s steadier climb.

The Franklin Templeton report suggests that Bitcoin’s "digital gold" label may not fully capture its current market behavior. While it shares some traits with gold during rare macroeconomic shocks, its day-to-day movements align more with the tech sector’s ups and downs. As Bitcoin continues to mature, its role in diversified portfolios may evolve, but for now, it dances to a different tune than gold.