A fresh debate over the safe-haven credentials of both gold and Bitcoin has erupted after economist Robin Brooks declared that gold’s traditional uncorrelated behavior has come to an end, while the first week of June saw gold outperform major cryptocurrencies amid resilient equities. The two developments highlight how once‑distinct asset classes are increasingly moving in tandem with risk-on markets.
According to Brooks, gold’s correlation with the S&P 500 index has surged to over 0.50 in recent months — a structural shift that he says matches Bitcoin’s own trajectory. “It used to be that gold was uncorrelated with swings in risk appetite and in the S&P 500, but those days are over. These days gold trades like a high‑beta asset. Safe haven no more,” Brooks posted on social media on June 5.
The data shows Bitcoin’s correlation with equities climbed to 0.55 between late 2025 and early 2026, a sharp rise from its historical average below 0.15. Gold’s correlation advanced in lockstep, effectively erasing its decades‑long reputation as a static hedge. Brooks ties this change to a permanent shift in gold’s investor base, driven by a flood of retail capital chasing the “currency debasement trade” rather than any institutional or dollar‑abandonment wave. The new buyer cohort, he argues, is inherently more pro‑cyclical and volatile, cementing a structural modification in gold’s pricing mechanics that did not reverse even after market corrections.
That thesis was tested in the opening week of June, when gold rose roughly 0.92% while the S&P 500 gained 0.41%. Bitcoin, meanwhile, shed 0.98% and Ether dropped a steeper 2.43%. The divergence reignited criticism that digital assets are unable to serve as a consistent safe haven during short‑term uncertainty, even as stocks held steady.
Supporters of Bitcoin and Ether push back, arguing that a single trading session cannot define a long‑term investment thesis. They point to Bitcoin’s fixed supply, growing institutional adoption, and regulated investment products as enduring qualities that transcend immediate liquidity‑driven fluctuations. Ether’s foundational role in decentralized finance and tokenization likewise gives it a value proposition beyond short‑term price action. For now, however, the developments reinforce the view that both gold and crypto remain heavily influenced by equity market dynamics, leaving the safe‑haven debate far from settled.
