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← Crypto's Correlation to Other Assets
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Question
What does research on Bitcoin correlation with equities during market stress events suggest?
1
Bitcoin correlation with equities is consistently low at 0.1 or below regardless of market conditions
2
Bitcoin consistently acted as a safe haven, rising during equity market sell-offs due to its uncorrelated return drivers
3
During acute risk-off events (COVID March 2020, 2022 rate cycle), Bitcoin showed elevated correlation with equities — falling alongside risk assets as institutional investors sold liquid positions to meet obligations, undermining its diversification value at the moments it would be most needed
4
Bitcoin only correlates with equities during US market hours; outside these hours it behaves independently
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