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Tue, Apr 8, 2025, 5:30 AM 4 min read
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Ten percent — that's however overmuch the Nasdaq has dropped successful conscionable 1 week. The S&P 500 is adjacent behind, down 8.80%, with the Dow falling 7.60% implicit the aforesaid period.
With each this volatility — arsenic the VIX deed a precocious of 45.60 — Bitcoin, arsenic of April 4th, is up implicit 1% connected the day.
Weird, right? When it comes to ‘risk-on’ assets, Bitcoin has typically been viewed arsenic the riskiest — but implicit the past fewer weeks, we've seen a correlation that's thing but typical.
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Bitcoin’s Historical Behavior and Correlation with Other Asset Classes
From 2012 done 2023, Bitcoin was either the apical oregon bottommost performing plus successful each calendar twelvemonth — ne'er successful the mediate — per WisdomTree’s March 2024 report, "Dynamic Correlations: Bitcoin vs. Other Asset Classes." In 9 of those years, it outperformed everything else. But successful years similar 2018 and 2022, it dropped implicit 60%, showing however utmost its swings tin be.
What's adjacent much absorbing is Bitcoin's debased and perpetually shifting correlation to accepted assets. WisdomTree's information shows its 50-day rolling correlation to the S&P 500 has typically ranged betwixt -0.1 to 0.2, sometimes spiking, but ne'er staying consistent. This suggests that Bitcoin isn't reliably tied to equities and tin enactment otherwise successful times of accent — precisely similar what we're seeing now.
"The hardest azygous happening to recognize astir correlation is that it is ever shifting." – WisdomTree, 2024
So portion the broader markets are bleeding, Bitcoin's resilience contiguous could beryllium a glimpse into its evolving relation — perchance arsenic a diversifier erstwhile accepted assets determination successful tandem.
Trending: It’s nary wonderment Jeff Bezos holds implicit $250 cardinal successful creation — this alternate plus has outpaced the S&P 500 since 1995, delivering an mean yearly instrumentality of 11.4%. Here’s however mundane investors are getting started.
Bitcoin and the S&P 500: Comparing 1-Year Performance Trends
When it comes to the past year’s show arsenic of Friday, Bitcoin is up astir 25%, portion the S&P 500 is down 7%. This means that if you had bought Bitcoin a twelvemonth agone today, you'd beryllium up, portion the other is existent for the S&P 500.
Source: Godel Terminal (BTC v SPX – Year % Change)
While this information is not analyzable and doesn't delve into a much in-depth method view, it's important to understand. The communal presumption would beryllium to merchantability Bitcoin during these downturns, arsenic it has been considered the riskiest plus retired there, but this elemental information acceptable shows different successful caller times.
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