its surprising that bitcoin s correlation is this low, even among other store of value assets. It coincided with bitcoin 's record breakout to nearly 20,000 in December. While a correlation coefficient of 1 would indicate their returns followed each other perfectly, a correlation of zero would indicate there was no relationship at all. I wrote about how to obtain this data in a previous post: How to Scrape Data for Over 1,900 ETFs. Burniskes analysis revealed that when examined on a weekly basis, the one-year rolling correlation of bitcoin and gold s returns was positive for nearly the entire period between 30th December, 2011, and 20th June, 2014. When overall correlation is low, so is the correlation between these two. Its arguable that.S. Bitcoin comparatives to gold hold about as much water as a colander hit by a shrapnel shot).
Historically gold has been the last resort hedge against the fear of overzealous monetary policy initiatives.
Bitcoin, it appears, is the same exact thing but for the digital age.
The potential correlation between bitcoin and stocks may be extending to another area of the market.
RBC Capital Markets Chris Louney has detected a fledgling relationship between bitcoin prices.
And if bitcoin is a financial asset, how should it be classified? Get updates from Signal Plot in your inbox. Secondly, interest rate expectations pivoted as the Fed opened the door to a more dovish stance based on a global economic slowdown potentially arriving on our shores. Is that a big deal? Greers paper, What is an Asset Class, Anyway? For example, if a major institution adopts bitcoin, this will affect the digital currencys price, he noted. Despite bitcoin 's January crash, Louney said, he hasn't detected any changes to the relationship since the December peak.
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