BTC does not correlate with anything
2 min readA well-known critic BTC Peter Schiff claims that the price of BTC does not correlate with other assets.
In the recent tweetu He wrote that BTC proves that it does not correlate with anything when he saw on Monday that while the prices of other risky assets fell, the price of BTC fell even more and the next day the risky assets rebounded, but BTC fell again.
At the end of the tweet, he made a funny statement:
“Congratulations to the HODLers. You own a risky asset that is declining regardless of the direction of other risky assets. “
The tweet was released shortly after the price of BTC climbed back above $ 30,000, after about 24 hours spent below that level. In other words, the BTC price recovery took place more or less at the same time as Peter Schiff’s tweet.
Does BTC really correlate with anything?
It certainly does not make sense to look for correlations of short-term price movements.
If we only take the last 30 days, we find that the price of BTC followed a downward trend (approximately -15% since the end of June), while, for example, the S&P 500 went up first, then down and then back to a more or less initial level.
Gold rose 1.6% during the period, while oil lost 8%.
Based on these data, it is still possible to say that BTC’s price trend over the last month does not correlate with the development of other major assets.
However, if we extend the analysis to the last 12 months, we find that BTC rose by 233%, while the S&P 500 index rose by only 33%, while oil rose by 62% and gold now has about the same price as in mid-July last year.
It is worth noting that in recent years, mainly due to the constant quantitative easing by central banks, prices have risen on a large number of assets, although the increase in the value of BTC has been higher.
