Mati Greenspan: Bitcoin’s Correlation with S&P 500 at All-Time High
Mati Greenspan: Bitcoin's Correlation with Due south&P 500 at Best High
The founder of Quantum Economics sees Bitcoin and the S&P 500 more than closely correlated than ever as a result of the coronavirus pandemic.
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Crypto analyst Mati Greenspan won the title of "father of the twelvemonth" from the ii hosts of Virtual Blockchain Week as he tended to his child while delivering a presentation to the virtual conference's attendees. Greenspan explained that Bitcoin and legacy assets were more closely correlated than you lot might think in the wake of COVID-19.
Resplendent in a sharp bowtie, the founder of Quantum Economics displayed the following graph "that shows what's happening in crypto." The post-obit chart represents Bitcoin's correlation with the Southward&P 500 on a range of 1 (perfect correlation) to -1 (inverse correlation). For crypto enthusiasts hoping for a positive outlook on Bitcoin (BTC), Greenspan admitted "nigh of you are not going to like what I have to say."
BTC correlation with SP500. Screenshot from Virtual Blockchain Week
According to the data Greenspan compiled from Coinmetrics, BTC and the S&P 500 currently have a correlation of roughly 0.6. This is the highest correlation we've seen since Jan 2022, when correlation barely exceeded 0.3. Greenspan says such a value indicates almost no correlation at all.
He argues, "nothing has emerged that's said 'crypto is going to be our savior.'" Bitcoin is however considered a "hazard asset" and "hasn't accomplished the safe oasis status that gold has taken thousands of years to build up."
Bitcoin all the same mostly improved in 2022
Pausing to feed his child some snacks, Greenspan continued his talk on "How to Invest in a Post-Virus Globe" by zooming in on Bitcoin's 2022 performance against the U.S. dollar.
Yellow = gilt; green = USD; blue = Southward&P500; white = silver; purple = crude oil; orange = BTC
Screenshot from Virtual Blockchain Week
Bitcoin has been "one of the best performers" equally the economic impact of the coronavirus really took effect in April. However, Greenspan pointed out that BTC has been up roughly 7% for 2022, in sharp contrast to oil, which went negative concluding week.
Source: https://cointelegraph.com/news/mati-greenspan-bitcoins-correlation-with-sp-500-at-9-year-high
Posted by: jaworskihoch1985.blogspot.com
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