Bitwise Report: Correlation from Bitcoin to S & P500 not worrying

In a letter to its investors, crypto asset management company Bitwise is taking a peel-back approach to assess the value of Bitcoin (BTC) amid the global pandemic that is shaking financial markets and trillions of dollars in aid packages to save large economies.

While stocks, gold and stocks are experiencing unprecedented turmoil and upheaval, the company is analyzing Bitcoin as an alternative investment and considering where it fits and how it can survive a brutal financial market climate. In mid-March, when the S&P 500 plunged and posted both the second largest one-day crash and the largest percentage one-day profit, some analysts concluded that every market, including real estate, crypto, stocks, bonds and gold, under pressure from macro factors, causing Bitcoin to drop to a yearly low below $ 4,000 on March 12, pushing the entire crypto market into the red.

 

It becomes clear

If you just look back a little, the long-term non-correlation becomes clear. For the 12 months to March 31, 2020, Bitcoin rose 55% while the S&P 500 fell 8%. For the past three years, the numbers have been Bitcoin + 463% and the S&P 500 + 16%. Bitwise concludes that despite the immediate impact of the corona virus that triggered the trillion-dollar rescue package adoption, amidst historic job losses, industry-wide closings, and home-going orders, Bitcoin’s recovery and long-term trend is “one.” unimaginable stress test under his belt “.