Crypto Logs: 2 Questions On Correlation

Aug. 26, 2022 8:00 AM ETBITO, BITQ, BKCH, BLCN, BTC-USD, COIN, GBTC, MSTR, SATO
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Summary

  • While correlations are just one factor to consider when investing in Bitcoin and Bitcoin-related equities, it remains a widely discussed topic especially given the state of the current market.
  • Over the years, correlations with equities have climbed, causing investors to wonder whether coupling of Bitcoin and equities is a long-term trend or a short-term occurrence.
  • Higher correlations with equities are not necessarily bad, especially for investors that are using Bitcoin and Bitcoin-related equities as a portion of a larger allocation to the technology sector or as a return enhancer.

Bitcoin Cryptocurrency concept

Olemedia

While correlations are just one factor to consider when investing in Bitcoin (BTC-USD) and Bitcoin-related equities, it remains a widely discussed topic especially given the state of the current market. There are two separate debates we often see regarding

Bitcoin correlations broader equity market increased

Bloomberg

BITO and GBTC correlation to BTC

Bloomberg

crypto ETFs provide thematic exposure high correlations with Bitcoin

Bloomberg

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