An interesting point worth noting is that Bitcoin can become an effective allocation tool in an investment portfolio primarily because of its extremely low correlation with other major asset classes. What does the data say? Its correlation coefficient with gold is only 0.14, far below the correlation among traditional assets. In other words, when stocks, bonds, and other assets fluctuate, Bitcoin often moves independently. Coupled with its fixed supply and the continuous growth in market demand, these two factors drive Bitcoin's long-term price appreciation potential. From an allocation perspective, such characteristics indeed give it a unique appeal.
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OnchainHolmes
· 10h ago
0.14 correlation coefficient? Is that real? It feels like people in the crypto world say that just to attract attention.
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ImpermanentPhilosopher
· 10h ago
0.14 is an interesting number, but I'm more concerned about how long this set of logic can hold up in extreme market conditions.
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ChainWatcher
· 10h ago
Once the number 0.14 came out, everything immediately changed.
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nft_widow
· 10h ago
What does the correlation coefficient of 0.14 indicate? It means you can buy the dip.
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OnchainHolmes
· 10h ago
0.14 correlation coefficient? This data is a bit interesting, but to be honest, I'm more concerned about how long this low correlation can last.
An interesting point worth noting is that Bitcoin can become an effective allocation tool in an investment portfolio primarily because of its extremely low correlation with other major asset classes. What does the data say? Its correlation coefficient with gold is only 0.14, far below the correlation among traditional assets. In other words, when stocks, bonds, and other assets fluctuate, Bitcoin often moves independently. Coupled with its fixed supply and the continuous growth in market demand, these two factors drive Bitcoin's long-term price appreciation potential. From an allocation perspective, such characteristics indeed give it a unique appeal.