Bitcoin’s changes with US stocks have questioned the role as a global safe asset during the financial stress.
Bitcoin (BTC) showed a strong negative correlation with the US stock market when analyzing short -term and 7 days, according to a new study by the Blockchain Data Provider Redstone Oracles, which was shared exclusively with Cointelegrap.
However, Redstone signals the “variable correlation” between Bitcoin price and S & P 500 index, with a correlation coefficient of -0.2 to 0.4.
This changing correlation suggests that Bitcoin does not have a strong negative correlation with a reliable counter movement during market stress, so Bitcoin does not play a true hedge.
relevant: As the analysts warn about supply shock, $ 1B Bitcoin terminates the coin base per day.
According to this study, Bitcoin may not be a reliable hedge to reduce the stock market, but it provides value as a portfolio diversification.
A dynamic signal that Bitcoin often moves independently with other assets and potentially provides additional revenue while other assets are having difficulty. Nevertheless, Bitcoin has not yet reflected the safe epidemiology of gold and government bonds, Redstone suggested.
relevant: The GDC listed on NASDAQ plans to purchase Bitcoin and Trump Memecoin for $ 300 million.
Bitcoin must be “mature” before being separated from the stock market.
According to Marcin Kazmierczak, co -founder and chief operating officer of Redstone, Bitcoin is ready to grow into a safe asset in the future, but the world’s first cryptocurrency is still “mature” with global assets.
Kazmierczak added to Cointelegraph as follows:
“Increasing the adoption of institutions will be absolutely helpful. We are already seeing this effect as we have already reduced Bitcoin’s 30 -day volatility by investing in the Ministry of Finance and repeatedly praised BTC as a portfolio asset.”
Meanwhile, Bitcoin has been increasingly recognized as a portfolio diversification with an annual return of more than 230% over the past five years, which is “highly performed” both stock and traditional safe assets.
Meanwhile, the decrease in volatility in Bitcoin supports the growth of BTC as a global financial asset. Bitcoin’s weekly volatility recorded the lowest level of 563 days on April 30, which is a development that shows more stable price measures.
Bitcoin’s price volatility is lower than the realized volatility of S & P 500 and NASDAQ 100, and investors are increasingly handling Bitcoin as a long -term investment means, COINTELEGRAPH reported on May 13.
https://www.youtube.com/watch?v=oqemr3g8dai
magazine: UNI students encryption ‘trim’ scandal, 67K fake women fraudulent: Asia Express