Senior commodities analyst Mike McGlone of Bloomberg Intelligence shared a portion of the most current Bloomberg report on his profile on the social networking site X, which was once as well-known as Twitter.
Following yet another historic price top for the flagship cryptocurrency, this paper includes updated Bitcoin statistics. It discusses not just a shift in the state of the Bitcoin market but also that of gold, its physical competitor.
“Bitcoin-to-Beta correlation is high”
According to McGlone’s tweet, the link between Bitcoin and Beta has risen recently. Specifically, the 60-day correlation between Bitcoin and the S&P 500 index has increased to almost 0.60, which is “the highest ever on the way up.”
According to McGlone, this “may suggest what’s driving up the crypto” at the moment. Both Bitcoin and this significant stock market index have been rising recently, setting new all-time highs one after the other. Bitcoin originally hit $75,000 last week before swiftly surpassing $79,000. The pioneer cryptocurrency jumped past the $82,000 price mark earlier today. Just a few hours ago, $82,490 reached a new record high.
Nevertheless, this stronger link could indicate that Bitcoin is now more susceptible to changes in the stock market and to riskier assets there as well.
Meanwhile, according to Bloomberg’s analyst, “Bitcoin has been trading more like a leveraged version of beta than a digital version of gold,” indicating that gold’s relationship to the stock market is nearly nonexistent.
