Bitwise CIO Matt Hougan highlighted an unusual trend in Bitcoin's price movements, noting that its 30-day rolling correlation with stocks over the past decade is approximately 0.2. This suggests Bitcoin's price aligns more closely with avocados than equities. Hougan pointed out that Bitcoin's correlation with bonds and commodities is nearly zero, challenging the media's perception of a strong link between Bitcoin and traditional markets, often observed during market downturns.
Hougan attributes Bitcoin's low correlation to its unique market drivers, such as regulatory changes and ETF developments, as well as a "one-time asymmetric capital inflow." He anticipates that any future increase in correlation will remain modest, maintaining a low level overall.
Bitcoin Shows Higher Price Correlation with Avocados than Stocks
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