- 90-day correlation between BTC and gold has reportedly reverted to positive levels.
- Gold protects against rupee drops since its price is globally tied to US dollars.
- While volatile, BTC has certain advantages and doesn’t have to replace gold to be useful.
The relationship between Bitcoin and gold has undergone a notable shift in 2026.
After moving in opposite directions earlier this year, the 90-day correlation between the two assets has reportedly reverted to positive levels. Ki Young Ju, the CEO of CryptoQuant, pointed this out on X.
His chart shows that Bitcoin and gold largely moved together from 2022 through most of 2025, then drifted apart and went negative toward the end of 2025 and into 2026, but now they’re back in sync again.
While this brought the digital gold narrative back into focus, Indian investors and traders are having doubts. They are wondering whether Bitcoin can genuinely fulfill the same role as gold in a portfolio, especially considering that the 90-day correlation is a historical measurement and not a prediction.
Why Does the Bitcoin-Gold Relationship Matter in India?
The World Gold Council’s data shows just how strong India’s gold demand still is. The country bought 151 tonnes of gold in Q1 2026 (up 10% from last year), and the total value nearly doubled to ₹2.275 trillion (roughly $23 billion). Investment demand was particularly strong, jumping 54% to 82 tonnes.
Gold can serve as a hedge against fluctuations in the Indian rupee, given that its price is set globally in US dollars. If the rupee loses value, the cost of gold in rupees can go up, even if the gold price in dollars doesn’t move much.
Bitcoin has several things in common with gold, as both have limited supply, aren’t tied to any government, can be traded globally, are easy to move, may shield against inflation, and are gaining more acceptance from big investors.
However, Bitcoin is considerably more volatile, and it can’t be seen as India’s new digital gold, at least not yet. Plus, India is tax-heavy on cryptocurrencies.
Gold has been a trusted store of value for centuries, held by everyone from households to central banks.
Bitcoin, on the other hand, has only been around for about 17 years and remains heavily swayed by things like market liquidity, borrowing, investor risk appetite, and crypto-specific news. A positive 90-day correlation doesn’t change that.
Still, Bitcoin has its advantages, since it can be transferred globally within minutes, held without physical storage, split into tiny pieces, and accessed anytime, day or night. As such, instead of pitting Bitcoin and gold against each other, both could be viewed as serving different purposes.
For Indian investors, the important point is that Bitcoin doesn’t have to replace gold to be useful.
Related: India’s INR Stablecoin Push Raises a New Dollarization Risk
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