Bitcoin's correlation to stocks has declined significantly


Bitcoin’s correlation to stock index S&P 500 has declined significantly, hinting that the two asset classes no longer move in the same direction.

The correlation between bitcoin and S&P 500, measured via BTC/USD on Coinbase and S&P 500 futures, has touched a two-month low.

The current correlation between the two asset classes is 0.15, which means it is nearly negligible. About a month ago, on April 16, the correlation was moderately positive at 0.53.

Source: TradingView, The Block Research 

A near-zero correlation between two assets indicates that there is no relationship between them or that they do not move in the same direction.

Correlation is expressed as a number between +1 and -1. +1 indicates an absolute positive correlation between two assets, meaning they always move together in the same direction. -1 indicates a total negative correlation, meaning two assets always move in opposite directions of each other.

Having two low-correlated or uncorrelated assets in a portfolio helps lower overall volatility.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post