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Bitcoin

BTC Correlation Skyrockets 40% with U.S. Equities in August Slump

August 15, 2023 - Around 2 mins mins to read

Key Points:

  • In August, BTC aligns with U.S. equities, spiking to 40%
  • Kaiko data shows Bitcoin’s bond correlation hits 33%, surprising investors.
  • Convergence of Bitcoin with traditional assets prompts a reevaluation of strategies.
Bitcoin (BTC) and traditional U.S. equities have experienced a notable uptick in August.
BTC Correlation Skyrockets 40% with U.S. Equities in August Slump

Data provided by Kaiko reveals that the correlation between BTC and U.S. equities has risen to 40%, while its correlation with the iShares Core U.S. Aggregate Bond ETF (AGG) stands at 33%.

This unforeseen development has caught the attention of investors and analysts alike, as the cryptocurrency market has long been considered somewhat independent of the movements in traditional financial markets. Historically, Bitcoin has often been hailed as a potential “digital gold” and a hedge against economic uncertainty, drawing comparisons to safe-haven assets like gold and bonds.

The recent data contradicts this narrative, indicating a convergence of sorts between Bitcoin and conventional investment vehicles. This shift could potentially reshape the perception of BTC’s role in investment portfolios, and prompt investors to reevaluate their strategies.

This change in correlation comes on the heels of a series of fluctuations in Bitcoin’s value. After experiencing a promising 13% surge in June, BTC’s performance took a turn for the worse in early July, marked by a gradual decline that has continued into August. This decline has left investors speculating about the factors driving the correlation between BTC and traditional assets, and whether this linkage is merely a short-term anomaly or a more sustained trend.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

# BTC market

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Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Bitcoin

BTC Correlation Skyrockets 40% with U.S. Equities in August Slump

Key Points:

  • In August, BTC aligns with U.S. equities, spiking to 40%
  • Kaiko data shows Bitcoin’s bond correlation hits 33%, surprising investors.
  • Convergence of Bitcoin with traditional assets prompts a reevaluation of strategies.
Bitcoin (BTC) and traditional U.S. equities have experienced a notable uptick in August.
BTC Correlation Skyrockets 40% with U.S. Equities in August Slump

Data provided by Kaiko reveals that the correlation between BTC and U.S. equities has risen to 40%, while its correlation with the iShares Core U.S. Aggregate Bond ETF (AGG) stands at 33%.

This unforeseen development has caught the attention of investors and analysts alike, as the cryptocurrency market has long been considered somewhat independent of the movements in traditional financial markets. Historically, Bitcoin has often been hailed as a potential “digital gold” and a hedge against economic uncertainty, drawing comparisons to safe-haven assets like gold and bonds.

The recent data contradicts this narrative, indicating a convergence of sorts between Bitcoin and conventional investment vehicles. This shift could potentially reshape the perception of BTC’s role in investment portfolios, and prompt investors to reevaluate their strategies.

This change in correlation comes on the heels of a series of fluctuations in Bitcoin’s value. After experiencing a promising 13% surge in June, BTC’s performance took a turn for the worse in early July, marked by a gradual decline that has continued into August. This decline has left investors speculating about the factors driving the correlation between BTC and traditional assets, and whether this linkage is merely a short-term anomaly or a more sustained trend.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.