The recent FTSE Russell report has shown that the correlation between Bitcoin (BTC) and other asset classes has increased since 2020. BTC has a strong correlation with US large-cap stocks, US financial stocks, and US tech stocks. The correlation between BTC and US high-yield credit stands at 0.49. However, correlations between BTC and other assets were closer to zero before the Covid-19 outbreak. Surprisingly, 7-10 year US Treasurys did not show a significantly higher correlation with BTC after Covid. The US dollar is the only asset that has a negative correlation with BTC and ETH. Despite being compared to gold, the correlation between BTC and gold in the post-Covid era is only 0.15. The report suggests that BTC's high volatility and the varying importance of safe haven and store-of-value characteristics in financial markets may obscure the true correlation between these assets' returns.



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