Bitcoin Poised for Continued Outperformance as Correlation with Stocks Weakens
According to André Dragosch, Bitwise's head of research for Europe, Bitcoin will continue to outperform the S&P 500. This prediction is based on the cryptocurrency's weakening correlation with traditional equities and its growing relationship with gold.
The 260-day correlation between Bitcoin and the S&P 500 has fallen to its lowest level since 2015, supporting this view. Dragosch pointed out that Bitcoin's recent strong performance, including a gain of nearly 25% in August and another 8.8% through September 22, is also a sign of its increasing independence.
Bitwise's research shows that Bitcoin's correlation with gold has increased, reaching its highest level since 2020. This suggests that the cryptocurrency is responding to monetary and fiscal uncertainty in a way that resembles gold, further supporting its potential for continued outperformance.