How Uncorrelated Is Bitcoin?

Oct. 07, 2021 7:20 PM ETBitcoin USD (BTC-USD)GLD9 Comments
Ariel Santos-Alborna profile picture
Ariel Santos-Alborna


  • Bitcoin decoupled from other risk assets following its September 29 price action.
  • After a period of relatively high correlation to U.S. equities, this is a reassuring sign in the debate that Bitcoin is truly an uncorrelated asset.
  • More importantly, Bitcoin’s correlation with inflation expectations may signify its adoption as an inflation hedge over gold.
Heap of golden bitcoins background

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According to Bridgewater’s Ray Dalio, “diversifying well is the most important thing you need to do in order to invest well.” His “Holy Grail” of diversification is fifteen uncorrelated bets. Can Bitcoin (BTC-USD) play a role

This article was written by

Ariel Santos-Alborna profile picture
Ariel is author of the book, "Understanding Cryptocurrencies: Bitcoin, Ethereum, and Altcoins as an Asset Class," available on Amazon, Barnes and Noble, or the Business Expert Press website. He has been featured in Forbes and Ariel specializes in macro, Bitcoin, and early stage Web3. In addition to writing investment content, Ariel worked as a product manager and advisor to Web3 startups and investment funds. He is currently an MBA Candidate at Harvard Business School.

Disclosure: I/we have a beneficial long position in the shares of BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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