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Bitcoin Shows No Correlation with All Major Asset Classes | Crypto Daily Digest Oct.18

Bitcoin Shows No Correlation with All Major Asset Classes | Crypto Daily Digest Oct.18

TokenInsightTokenInsight2023/10/18 15:50
By:TI Research

Recent research by Galaxy claims Bitcoin can be a hedge asset against global uncertainties for investment portfolios in the long run due to its low or even negative correlation to most major asset classes.

In a world grappling with persistent inflation, currency devaluation, divergent and extreme fiscal policies, growing multipolarity, and other macroeconomic challenges, Bitcoin's unique qualities as a non-sovereign, transparent, and predictable asset shine through. These fundamental properties make Bitcoin an appealing hedge against global uncertainties for long-term investment portfolios.

Historically, bitcoin’s correlation relative to established macro assets, on average, hovers within a +/- 0.30 range around zero. Over its 14-year history, bitcoin has demonstrated very low or even slightly negative correlation to most major global asset classes, including the SP 500, Russell 2000, MSCI ACWI Index, US Agg Bond Index, Bloomberg Commodities, Gold, and the US Dollar index.

Bitcoin Shows No Correlation with All Major Asset Classes |  Crypto Daily Digest Oct.18 image 0

It is these typically low correlations to major asset classes paired with bitcoin’s asymmetric return profile that has enabled bitcoin to demonstrate return-enhancing outcomes when added to traditional portfolios.

Today's Market

Bitcoin Shows No Correlation with All Major Asset Classes |  Crypto Daily Digest Oct.18 image 1

Bitcoin Shows No Correlation with All Major Asset Classes |  Crypto Daily Digest Oct.18 image 2 Source: TokenInsight Gainers and losers

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What's New from TokenInsight?

Crypto Exchange Report 2023Q3: Q3 saw a downward trend for the market as a whole, with the price of Bitcoin dropping from $30,000 to $27,000. So how are the exchanges doing? Let’s find out together.

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Summary of Token Unlocks in 2023 Q4: We have compiled information on 12 upcoming token unlock events with unlock amounts exceeding $1 million. This information includes details such as unlock quantity, timing, amount, circulating supply, and other key data.

Bitcoin Shows No Correlation with All Major Asset Classes |  Crypto Daily Digest Oct.18 image 4

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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