NYDIG: Bitcoin’s Equity Correlation Overblown
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- NYDIG reports Bitcoin’s correlation with major indices using a 90‑day rolling basis.
- Cipolaro says Bitcoin is not being priced as a hedge against macroeconomic conditions, explaining frustration over its failure to “act like gold”.
- Cipolaro adds that traders appear to allocate assets along a risk curve rather than buying Bitcoin for a distinct monetary thesis.
- Cipolaro argues that Bitcoin’s market structure and economic drivers are distinct, pointing to network activity, adoption trends, and regulatory and policy developments.
- Cipolaro says this differentiation supports Bitcoin’s role as a portfolio diversifier, noting that elevated cross‑asset correlations with equities remain far from determinative of Bitcoin’s returns.
Why it matters: Investors looking for diversification gain from Bitcoin’s distinct market drivers, while those betting on it as a macro‑hedge see limited value as its correlation with equities, though elevated, does not dictate returns, underscoring the asset’s role as a risk‑adjusted diversifier rather than a safe‑haven.
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