Cryptocurrencies
Bitcoin’s Ebbing Correlations Boost Its Diversification Benefits
- Largest cryptocurrency climbed fivefold in past year to record
- Cornerstone highlights declining correlation with S&P 500
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Bitcoin’s correlation with stocks and gold is declining as the token scales fresh peaks, bolstering arguments that cryptocurrencies offer portfolio diversification benefits.
The 90-day correlation of the S&P 500 index and Bitcoin has dropped to about 0.21 from a recent peak above 0.50 in October. A comparable measure for the token and bullion is near the lowest in about a year.