Bitcoin As A Stock Market Correction Hedge: What The Charts Reveal

Oct. 11, 2021 7:30 PM ETBitcoin USD (BTC-USD)DIA, GLD, QQQ, SPY22 Comments
Bradley Guichard profile picture
Bradley Guichard


  • During the most recent stock market pullback, especially in tech, Bitcoin began to rise.
  • This led to more talk of whether Bitcoin is an effective hedge against a severe sharp or sustained downturn in stocks.
  • Analysts also speculated that Bitcoin is being used to hedge inflation.
  • I tested data points from 2021 to see if it supports this theory and share the results below.
Technical analysis of stock exchange shares and forex

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Article Thesis

It has been much discussed whether cryptocurrency is an effective hedge against a stock market correction or crash. If it truly is a hedge against a sharp market downturn, it should generally experience a spike when the S&P 500 (

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Bradley Guichard profile picture
If you are a medium to long-term investor looking for an analysis of equities focused on cash flow, growth, and other critical metrics from a financial professional who knows financial statements inside and out, consider giving me a follow.While I am Tech-focused, I have a diversified portfolio, including growth and value equities, REITs, and dividend stocks. I like to use options for income and risk management when the opportunity arises. I have over 15 years of experience in the market. I am a practicing CPA; however, I have learned about investing more from avid reading, market watching, experience, and of course, making mistakes over the years. Also, am an admitted Excel junkie. I believe Benjamin Franklin when he said: "An investment in knowledge pays the best returns," and Warren Buffet that "The most important quality for an investor is temperament, not intellect." I am constantly learning and focusing on long-term goals - even when the market misbehaves.  Thank you very much for reading, and please feel free to leave me a message in the comments or send a private message. All the best!

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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