- Bitcoin and the one-month S&P 500 correlation has hit a new high.
- Bitcoin is outperforming gold year-to-date (YTD).
The economic outfall of the pandemic has wreaked havoc on global economies, with markets losing trillions in a short period. While the stock market and Bitcoin are two different markets, the correlation between Bitcoin’s price and the S&P 500 has been on the rise, reaching record highs.
The S&P 500, also known as the Standard and Poor’s 500 Index, is an index measuring the market performance of 500 large companies. The index is often used as a benchmark to gain insight into the overall economy.
According to Skew, a cryptocurrency data analytics platform, the one-month Bitcoin price and S&P 500 realized correlation rose to an all-time high of 66.2% on June 30. Following the high, the correlation has continued to remain above 65%.
The correlation, however, has been substantially volatile, with the figure dropping below -50% in March following Bitcoin’s massive crash to $5000.
Bitcoin Outperforms Gold
Bitcoin is often compared to gold due to its limited supply and scarcity. Furthermore, Bitcoin’s inflation rate is set to match that of gold this year. Despite sharing some similarities, the relative newcomer has outperformed gold year-to-date (YTD).
While Bitcoin is notorious for its volatility, The Crypto Associate reported on the returns of dollar-cost-averaging into Bitcoin versus gold for three years. Put briefly, Bitcoin outperformed gold, despite its relatively massive price fluctuations.
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