According to analyst James V. Straten's recent findings shared on Reddit on July 21, Bitcoin is a unique asset class that does not show significant correlations with traditional trading instruments like equities. The study found that Bitcoin is mostly correlated with Ethereum at 0.70, but has a weak correlation with the S&P 500 at -0.05 and diverges with gold at -0.12. This independent nature of Bitcoin's performance makes it an attractive investment option for portfolio diversification, especially as recent developments in the crypto sphere could further reduce its correlation with equities. Additionally, Bitcoin's deflationary nature and increasing adoption are expected to keep it positive in the long-term, despite the upcoming reduction in miner rewards in Q2 2024.
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