By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
CryptoXTimesCryptoXTimes
  • Home
  • News
    • Crypto
    • Bitcoin News
    • Ethereum News
    • Altcoin News
    • Shiba Inu News
    • Ripple News
    • Analysis
    • iGaming News
  • Cryptocurrency
    • Price Prediction
    • Learn
    • Reviews
  • Advertise
    • Press Release
  • Contact Us
Notification Show More
Font ResizerAa
CryptoXTimesCryptoXTimes
Font ResizerAa
  • Home
  • News
  • Cryptocurrency
  • Advertise
  • Contact Us
Search
  • Home
  • News
    • Crypto
    • Bitcoin News
    • Ethereum News
    • Altcoin News
    • Shiba Inu News
    • Ripple News
    • Analysis
    • iGaming News
  • Cryptocurrency
    • Price Prediction
    • Learn
    • Reviews
  • Advertise
    • Press Release
  • Contact Us
Have an existing account? Sign In
Follow US
© 2024 CryptoXtimes. All Rights Reserved.
CryptoXTimes > Article > News > Bitcoin’s Revelation On Stock Relationship By Fidelity Executive Unveiled
NewsBitcoin News

Bitcoin’s Revelation On Stock Relationship By Fidelity Executive Unveiled

Bitcoin's Correlation Insight from Fidelity Executive Observations

Rubab Fatima
Last updated: April 4, 2024 10:03 pm
Rubab Fatima 1 year ago
Share
Bitcoin's Revelation On Stock Relationship By Fidelity Executive Unveiled

A recent post on social media site X was all about Bitcoin, which is the most significant cryptocurrency by market value. In this post, Jurrien Timmer, an executive at Fidelity, made an interesting point. Timmer said that Bitcoin now has a “largely negative correlation” with the S&P 500, which is a key indicator of how well the US stock market is doing. 

A note for anyone in the 60/40 realm who has Bitcoin on the menu is that its correlation to equities has come way down, as has its annualized volatility. Based on the 52-week rolling correlation to the S&P 500, Bitcoin now has a modestly negative correlation and a vol of “just”… pic.twitter.com/oVJizC3lAT

— Jurrien Timmer (@TimmerFidelity) April 4, 2024

“For those considering Bitcoin within a 60/40 investment strategy, it’s noteworthy that its correlation with stocks has significantly decreased, along with its annualized volatility,”Timmer said. 

Bitcoin’s Diverse Correlation Trends

By showing a negative correlation, Bitcoin seems like an ideal choice for diversifying your wealth. But this makes it harder for cryptocurrency buyers to guess how prices will move, since BTC might not move in the same way that stocks do when macroeconomic factors change. 

In 2022, both BTC and stock prices went down at the same time because the US Federal Reserve quickly raised interest rates to fight rising inflation. In March 2022, Bitcoin’s relationship with the S&P 500 jumped to almost 0.50, the highest level seen since 2020. 

This event was a big loss for people who were pushing BTC as a powerful way to diversify investments that could work on its own, separate from traditional asset classes. Although some people thought BTC was a “inflation hedge,” others said it behaved more like a normal risk-on asset. 

That being said, the connection trend started to go the other way in 2023. According to study done by K33 in March 2023, BTC was once again becoming a popular way to invest, acting as a “robust diversifier.”

However, Eric Chen, co-founder of Injective Labs, warned that Bitcoin’s link to stocks might get stronger again, especially since many ETFs were released earlier this year.

People are still interested in how the relationship between Bitcoin and standard financial assets is changing, which has an effect on investment strategies and the way the market works. News about BTC, Fidelity, and Jurrien Timmer

You Might Also Like

PEPE Memecoin Surges 8.5% After Trump’s Cryptic Post Sparks Frenzy

Telegram Integrates Elon Musk’s Grok AI in $300M Deal

Berachain Transactions Tumble, Fee Revenues Cut In Half

Trump Media Launches $2.5B Crypto Investment Strategy

$BONK Surges 4% as Breakout Above $0.000021 Nears

TAGGED: Bitcoin, Crypto, Cryptocurrencies, ETF
Previous Article Telegram Leads As Grindery Transforms Crypto For 800m Users Telegram Leads As Grindery Transforms Crypto For 800m Users
Next Article Solana Network Struggles Battling Bot Spams, Transaction Woes Solana Network Struggles Battling Bot Spams, Transaction Woes
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Socials
TwitterFollow
TelegramFollow
LinkedInFollow

Subscribe to our newslettern

Get Newest Articles Instantly!

Popular News
PEPE Memecoin Surges 8.5% After Trump’s Cryptic Post Sparks Frenzy
PEPE Memecoin Surges 8.5% After Trump’s Cryptic Post Sparks Frenzy
Iceland PM Shifts Energy from Bitcoin to Agriculture
Iceland PM Shifts Energy from Bitcoin to Agriculture
RippleX Halts AMM Pool Deposits Due to XRP Ledger Glitch
RippleX Halts AMM Pool Deposits Due to XRP Ledger Glitch

You Might Also Like

XRP Gathers Momentum Amid Whale Accumulation and ETF Buzz
Altcoin NewsNews

XRP Gathers Momentum Amid Whale Accumulation and ETF Buzz

By Muhammad Ali 1 month ago
MOVE Token Drops 20% After Coinbase Announces May 15 Trading Suspension
CryptoNews

MOVE Token Drops 20% After Coinbase Announces May 15 Trading Suspension

By Haider Ali 1 month ago
XRP Eyes Potential 15% Gains Amid Regulatory And Market Developments
NewsCrypto

XRP Eyes Potential 15% Gains Amid Regulatory And Market Developments

By Nayab Fatima 4 months ago
Shibarium Hits 912M Transactions as SHIB Burn Rate Skyrockets
NewsCrypto

Shibarium Hits 912M Transactions as SHIB Burn Rate Skyrockets

By Rubab Fatima 4 months ago
CryptoXTimesCryptoXTimes
Follow US
© 2024 CryptoXtimes. All Rights Reserved.
  • About Us
  • Careers
  • Privacy Policy
  • Risk Disclaimer
Welcome Back!

Sign in to your account

Lost your password?