荣誉积分榜

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
## [TL; DR]
The correlation between U.S stocks and investment-grade bonds increased during the first two weeks of August. 

Bitcoin has been correlated with precious minerals like gold and silver for over two years now. 

A rise in institutional adoption of cryptocurrencies results in stronger crypto correlation with traditional investment assets.
## Introduction 
During [bitcoin’s early days between 2009 and 2010](https://www.gate.io/learn/course/bitcoin-fundamental "bitcoin’s early days between 2009 and 2010") it lacked correlation with most assets which made it highly unique. It was truly independent of the turmoil that affected different types of assets like stocks, forex markets and commodities. 

However, the increasing awareness of the essence of <a href="/zh-tw/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and institutional adoption have resulted in correlations between bitcoin and other asset types. This article explores bitcoin’s correlations with other assets including stocks and commodities. 

Read also: [Crypto Funds 101: Fund Classification](https://www.gate.io/blog_detail/2110/crypto-funds-101-fund-classification "Crypto Funds 101: Fund Classification")
## Bitcoin Correlations with Traditional Financial Assets
During the past few years bitcoin has become increasingly correlated with several asset types. For example, it is correlated with major stocks, precious minerals and other cryptocurrencies like ETH. There are different explanations why bitcoin is correlated to these assets. 

Read also: [Why Many Crypto Assets Are Falling](https://www.gate.io/blog_detail/1275/why-many-crypto-assets-are-falling "Why Many Crypto Assets Are Falling")

In October 2022 the Multidisciplinary Digital Publishing Institute explained the correlation between crypto assets and different traditional investment instruments. First, it concluded that the BTC correlation with other asset types is stronger in the long-term timeframe than the short-term one. The main reason for this is that bitcoin has high price volatility. 

The crypto correlations with traditional financial assets emerged during the Covid-19 era. According to the Multidisciplinary Digital Publishing Institute report, bitcoin is positively correlated with several risk assets but negatively correlated with the United States dollar. However, these conclusions may change as new price data comes and emerging trends show up .  
## Possible Reasons Why Bitcoin Correlates with Several Risk Factors
Before [we explore bitcoin correlation](https://www.gate.io/article/28405 "we explore bitcoin correlation") with other specific asset types let’s look at the possible causes of the correlations. 

First off, bitcoin now correlates with other asset types because it exists on balance sheets of many institutional investment firms. As a result, they make their bitcoin investment decisions based on macroeconomic fundamentals which also affect the prices of other asset types. 

As an example, since bitcoin has evolved into a class-asset various economic factors like interest rates and inflation influence its price movements. As we know, these are the factors that also determine the prices of other asset types like commodities, stocks and indices. The following table shows the factors that can influence the prices of cryptocurrencies and stocks. 

Read also: [Bitcoin Halving: Countdown to Crypto Bull Market](https://www.gate.io/explore/bitcoin-halving-countdown "Bitcoin Halving: Countdown to Crypto Bull Market") 
![](https://gimg2.gateimg.com/image/article/16939874118441693987355_.pic.jpg)
Factors that Influence Prices of Equity Market and Cryptocurrencies - Investopedia

As Investopedia shows the above factors influence the values of different assets including cryptocurrencies and stocks. For example, changes in the gross domestic products of leading economies like the United States have an impact on the values of the different assets like bitcoin and commodities. 

Read also: [Bitcoin becomes an Asset Class with Positive Correlation with Stock Market](https://www.gate.io/blog_detail/1429/bitcoin-becomes-an-asset-class-with-positive-correlation-with-stock-market "Bitcoin becomes an Asset Class with Positive Correlation with Stock Market")

If there is a global recession, for instance, the values of assets like stocks, cryptocurrencies and commodities may decrease. However, this does not mean that their prices change by similar margins. 

Some traditional financial institutions have introduced digital assets that are linked to bitcoin. For instance, such firms have launched crypto-related investment assets such [as crypto exchange traded funds (ETFs)](https://www.gate.io/blog_detail/207/why-do-people-choose-crypto-etfs-what-are-the-advantages-and-disadvantages "as crypto exchange traded funds (ETFs)"). The fact that many asset management  institutions provide crypto-related investment instruments has enabled individuals and firms to invest in cryptocurrencies including bitcoin.  

Read also: [What are Leveraged ETF Tokens?](https://www.gate.io/learn/articles/what-are-leveraged-etf-token/243 "What are Leveraged ETF Tokens?")
## Correlation between Crypto-related Stocks and Bitcoin
Let’s turn our attention to specific asset types that are correlated to bitcoin. There are several crypto-related equities like COIN, RIOT and MSTR that are positively correlated with bitcoin. As an instance, the correlation coefficient of BTC/MSTR, BTC/RIOT and BTC/COIN has been close to 1 for the past several months.  

To illustrate, the correlation coefficient between bitcoin and MicroStrategy (MSTR) has never been lower than 0.68 since September 2022. On the other hand, ROIT’s correlation fell to 0.75 in June this year while that of Coinbase (COIN) was near zero during May and June. 

The following chart shows bitcoin 90-day correlation coefficients with COIN, ROIT and MSTR. This year, however, all these stocks have outperformed bitcoin. 
![](https://gimg2.gateimg.com/image/article/16939874988451693987370_.pic.jpg)
Bitcoin Correlations with COIN, ROIT and MSTR - TradingView

The main reason why the above stocks correlate to bitcoin is that the involved companies like MicroStrategy and Coinbase hold large quantities of BTC. Specifically, the latest on-chain data shows that MicroStrategy holds 152,333 Bitcoin, Coinbase 10,766 BTC and Riot 7,094 BTC. 
## Bitcoin vs Precious Metals 
Likewise, the [Bitcoin price](https://www.gate.io/price/bitcoin-btc "Bitcoin price") is correlated to the values of certain precious metals like silver and gold which fall under commodities. However, in comparison, since 2019 bitcoin is more correlated to silver than gold. According to Jordan Doyle and Urav Soni of the CFA Institute silver has a correlation coefficient of 0.26 while gold has 0.15 against BTC. 
## BTC Correlation with Active Equity Funds and Bonds
Generally, there is correlation between growth funds and bitcoin. During the first two weeks of August the correlation between bitcoin and US equities and investment-grade bonds increased remarkably. 

According to Kaiko, a research firm, the correlation between bitcoin and US equities increased by 40%. Similarly, the correlation between BTC and U.S investment-grade bonds rose by 33% as the following graph depicts. 
![](https://gimg2.gateimg.com/image/article/16939875538461693987384_.pic.jpg)
Correlation between Bitcoin and Traditional Assets - Kaiko

As <a href="/zh-tw/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> shows, since March the correlation between Bitcoin and S&P500 has been higher than that of BTC and bonds. Nonetheless, the level of correlation between BTC and traditional investment assets does not remain constant forever. The volatility of bitcoin, which changes with time, may affect it. 

In general, the correlation implies that BTC price moves in a similar direction as that of stocks or bonds. The correlation between bitcoin and these traditional financial assets is likely to increase when many institutional investors accumulate more cryptocurrencies including bitcoin. 

Read also: [BTC Price Prediction & Forecast for 2023, 2025, 2030](https://www.gate.io/price-prediction/bitcoin-btc "BTC Price Prediction & Forecast for 2023, 2025, 2030")
## Conclusion 
Recent on-chain data has shown that there is a correlation between bitcoin and some traditional investment assets like stocks, precious minerals and bonds. However, the level of correlation varies from time to time based on several factors such as the volatility of BTC and the institutional adoption of cryptocurrencies. 
## FAQs about Bitcoin Correlation
### What is the most correlated cryptocurrency?
Bitcoin is the most correlated cryptocurrency. It is correlated with equities, investment-grade bonds, commodities like silver and other cryptocurrencies especially Ether (ETH).
### What is correlation analysis of cryptocurrency?
The correlation analysis of cryptocurrency is the study of the relationship between the price movement of a specific crypto asset with the values of other investment instruments like equities, bonds and commodities. For instance, bitcoin is correlated with equities, precious commodities like silver and <a href="/zh-tw/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> coin.
### Which crypto correlates with bitcoin?
At most times, the price of bitcoin is correlated to that of Ether (ETH). However, the correlation between these two major cryptocurrencies changes over time. At certain occasions it is high while at other times it is very low. 



<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

English

日本語

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构-借贷服务

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币借贷

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

新手引导(合约)

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

买币-法币交易

买币-银行账号

买币-快捷交易

买币-信用卡

买币-paywith

买币

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

小红花

web3

Analysis: Relationship between Bitcoin and TradFi Asset Types