Disclosure: Members of our team may own positions in assets mentioned in this report. This statement is intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token. This content is for informational purposes only and you should not make decisions based solely on it. This is not investment advice.
Crypto assets did not take well to yesterday’s inflation data. After a trip towards the range low, BTC and ETH are finally finding a semblance of strength. Other crypto assets have continued to take a beating into today’s session.
Bitcoin’s Legacy Correlations
- Bitcoin is often touted as an uncorrelated asset relative to conventional asset classes like equities, bonds, etc. Over the long-term, this holds true, but in the short-to-medium term, correlations tend to fluctuate depending on market conditions and general risk appetite.
- Despite its “digital gold” narrative, the correlation between BTC and physical gold also tends to ebb and flow. Over the last year, we’ve seen the correlation between the two slide, which naturally prompted some market pundits to question the validity of said narrative.
- Putting short-term correlations aside, our long-term thesis of broad-based fiat currency debasement will serve as a long-term tailwind for all three (BTC, gold, and equities), but the relative performance of each w