Crypto Correlation With Gold, S&P 500 Increasing, Asset Class Going Mainstream
The crypto and legacy markets are increasing their correlation levels. The new asset class has been trading like a big tech stock for a while as the global markets seem to brace for the beginning of a tightening cycle. Related Reading | $240 Million In Crypto Futures Liquidates As Bitcoin Slips Below $39k The U.S. Federal […]
Related News
BTC used to be an uncorrelated asset, but that’s no longer the case. What can gold and stocks suggest about the crypto markets? Bitcoin (BTC) is an uncorrelated asset, or so the narrative used to go. For much of Bitcoin’s lifetime, it existed as something of value to a very small group of people. Now, awareness and demand are accelerating rapidly. So, what does this mean for the status of BTC as a supposedly uncorrelated asset? That Bitcoin was an uncorrelated asset isn’t just conjecture — the numbers back it up. According to data compiled by VanEck in early 2021, there was almost no....
More demand could just mean bigger correlations to traditional markets, the bank’s researchers say. Bitcoin (BTC) and cryptocurrency adoption may not necessarily make its price higher in dollar terms, Goldman Sachs argues.In a note seen by Bloomberg published Thursday, the international banking giant claimed that mainstream acceptance of crypto assets would increase their correlation to other mainstream asset classes.Goldman: Adoption is a “double-edged sword”In a view contrary to that of many Bitcoin proponents, Goldman sounded firmly uninspired by the prospect of crypto as a tool for the....
Bitcoin truly is a new asset class that investors should take seriously, not just because of the extraordinary returns thus far, but because of its correlation to everything else. It’s All About the Correlation. The holy grail of portfolio management is to find an asset with a positive expected return that isn’t correlated to anything else. You want....
Bitcoin is nearing a psychological tipping point, gold parity. Its price has been accelerating in the past few days, increasing by $100 in just over 24 hours. Meanwhile, gold has fallen by $200 this quarter, currently standing at $1,134.45. Gold’s Price This Quarter. There appears to be a strong inverse correlation between gold and bitcoin from September to now, with bitcoin gaining $300 while gold has lost $200. The reasons for this inverse correlation are not fully clear. Bitcoin’s Price on Bitstamp. Gold usually performs well in times of uncertainty, as is often the case with bitcoin,....
Bitcoin continues to lose momentum on low timeframes, as bulls were unable to follow through on yesterday’s upside impulse. The cryptocurrency was rejected around the mid-area of its current levels and might be bound for a fresh re-test of local support. Related Reading: All Signs Prove Shiba Inu Is Ready For A Run; Here Is Why? At the time of writing, Bitcoin price trades at $20,000 with a 1% loss and a 3% profit in the last 24 hours and 7 days, respectively. Despite its negative price performance, BTC remains relatively strong when compared with other cryptocurrencies in the top 10 by....