Bitcoin as an uncorrelated asset class

Throughout its 10 years of existence, Bitcoin has by and large been uncorrelated with other macro asset classes such as equities, fixed income, gold, and oil.

This empirical observation, combined with the thesis that Bitcoin could be an effective hedge against global fiat and banking systems, makes it an attractive source of diversification for institutional and individual portfolios.

Below is the 1-year rolling correlation between Bitcoin and S&P 500 since 2010. There were periods of high correlation, but the regime changes every couple of years.

Below is the rolling correlation between Bitcoin and gold. It has largely been in the positive zone in recent years but fairly low.

Below are the same analyses for US treasury bonds and crude oil. Again, there are both periods of positive and negative correlations.

For context, Bitcoin has been highly correlated with Ethereum.

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