Bitcoin correlation with stocks, gold decreases further

IconCryptoNewsTerminal Staff01 Aug, 2024

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Bitcoin correlation with stocks, gold decreases further

Bitcoin's correlation with the US stock market and gold has been declining since June. This is according to cryptocurrency trader Trader T, who spoke to X. The current BTC-S&P 500 correlation coefficient is -0.28. The correlation coefficient ranges from 1 to -1, with higher values indicating a positive correlation, or similar price movements, and lower values indicating a negative correlation, or opposite price movements. This decrease in correlation is likely due to a number of factors, including the increasing maturity of the cryptocurrency market and the growing adoption of Bitcoin as a store of value. As Bitcoin becomes more widely accepted, it is less likely to be influenced by the short-term price movements of other assets. The decline in correlation is a positive development for Bitcoin, as it suggests that the cryptocurrency is becoming more independent and less likely to be affected by external factors. This could lead to increased stability and adoption of Bitcoin in the long term.

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