The investment company VanEck has published a report describing the compilation of the investment portfolio and what assets are now in vogue. Bitcoin has proven to be a very popular investment among those with greater risk. A certain role is also played by the fact that historically Bitcoin is not very correlated to other traditional markets.
Bitcoin has a long history, during which it was referred to as an asset that is not dependent on any other market. But this narrative, along with the onset of the coronavirus crisis, has greatly weakened after the price fell by 50% after the pandemic was announced.
So VanEck’s task was to find out who invested in Bitcoin and, above all, what the correlation was between other markets. The first table is from March 13.
The company’s report says:
Bitcoin shows little correlation to the traditional market. Bitcoin maintains a correlation between -0.1 and 0.1 for most assets.
What is really interesting is the chart from March 27, when it was the worst behind us.
As can be seen from the table, the correlation between gold and Bitcoin is several times greater. The two assets are therefore almost in the same trajectory.
According to Van Eck, in addition to a safe haven, cryptocurrency helps to keep the portfolio in danger of collapsing due to its low correlation.