Oct 24, · One analytics firm noted that Bitcoin’s correlation with the stock market now sits at zero, which is a bull-favoring development. “With Bitcoin’s +% price surge this past week, its correlation to the #SP has dropped back to 0 for the first time since May on our day rolling average model. Jan 03, · Bitcoin’s correlation to stocks (or lack thereof) may be one of its biggest selling points. Wise investors generally try to diversify their portfolios to reduce risk. When one asset, such as stocks, falls, another type of asset, such as bonds, tends to rise or at least not fall as much. Oct 03, · That’s because the correlation between Bitcoin and the benchmark S&P stock index remains positive, meaning that its price movements are consistent with those in equity markets. Author: Vildana Hajric.
Bitcoin and stock market correlationBitcoin’s Stock Market Correlation Just Hit Zero for the First Time Since May
These correlations prompted on-chain analytics firm glassnode to acknowledge that BTC investors must remain aware of stock movements. Tech stocks also rallied higher, with the Nasdaq Composite gaining points. Tesla stock was the biggest contributor to this growth as it added 48 points to the Nasdaq index. The historically low correlation between stocks and BTC failed to play out during the sep.
This rare occurrence indicates that the digital asset tends to get liquidated by investors during vulnerable periods of the global economy. In this way, BTC remains similar to tech stocks and other risk-on assets. Looking ahead, there is a macro factor that could cause legacy markets to shoot up , according to Alex Kruger, a macro crypto analyst, and economist. A rebounding stock market is bullish for BTC, given the correlation seen between the two asset classes. That said, institutional investors still have faith in BTC as a hedge against inflation despite mirroring stock movements in recent weeks.
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies. We are dedicated to providing unique and informative daily content across all facets of the blockchain and cryptocurrency industry whether it be news, opinion pieces, technical analysis, reviews, interviews, podcasts and more.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Home All News. Is the Historically Low Correlation Fading? In its most extreme use case, Bitcoin is an insurance policy against the collapse of financial systems, economies, and political regimes. The current crisis only began one month ago. After all, gold fell sharply at the onset of the crisis but broke away from equities shortly after.
Will digital gold chart the same path? The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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The consensus is that the correlation between bitcoin and stocks is weak. Did this hold up in ? Was Bitcoin Correlated with Stocks in ? Looking Ahead What will the relationship between bitcoin and stocks look like in ?
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