Research Summary
The report discusses the correlation between Bitcoin (BTC) and Gold. It highlights that while BTC showed some correlation with Gold in the second half of 2022, this correlation was almost always lower than its correlation with equities. The report also notes that BTC’s correlation with Gold significantly dropped during June’s BTC spot price rally. The report suggests that BTC is currently as correlated to Gold as it is to bonds or equities.
Actionable Insights
- Monitor the correlation between BTC and Gold: While there was some correlation in the second half of 2022, it has significantly dropped recently. This suggests that BTC’s performance may not be as closely tied to Gold as some may think.
- Consider the correlation between BTC and other financial assets: The report suggests that BTC is currently as correlated to Gold as it is to bonds or equities. This could have implications for portfolio diversification strategies.
- Keep an eye on market events: The report notes that BTC’s correlation with Gold increased around the time of inflation peaking in the US and the US Treasury yield curve moving towards inversion. Understanding these events could help predict future BTC performance.
