Mike McGlone, the senior commodities strategist at Bloomberg Intelligence, has taken to his profile on the X social media platform (widely famous as Twitter in the past) to share part of the recent Bloomberg report.
This document mentions new Bitcoin data after the flagship cryptocurrency has reached yet another historic price peak. It talks about not only a change in the Bitcoin market situation but of that of gold, its physical rival, too.
“Bitcoin-to-Beta correlation is high”
McGlone tweeted that, currently, the Bitcoin-to-Beta correlation has increased. Particularly, BTC’s 60-day correlation to the S&P 500 index has reached roughly 0.60 – “the highest ever on the way up.”
This “may suggest what’s driving up the crypto” now, McGlone wrote. Recently, this major stock market index has been on the rise, and so has Bitcoin, printing new all-time highs one after another. Last week, BTC first reached $75,000, then quickly surpassed $79,000. Earlier today, the pioneer cryptocurrency surged above the $82,000 price level. A new record peak was set at $82,490 a couple of hours ago.
Bitcoin-to-Beta Correlation Is High, Gold’s Is Low – #Bitcoin’s 60-day correlation to the S&P 500 at about 0.60 is the highest ever on the way up, and may suggest what’s driving the crypto. Juxtaposed is #gold’s connection to beta closer to zero as of Nov. 8, showing Bitcoin has… pic.twitter.com/3mT4nyNY3a
— Mike McGlone (@mikemcglone11) November 11, 2024
Still, this increased correlation may suggest that Bitcoin has become more sensitive to stock market dynamics and to higher-risk assets on the stock market as well.
In the meantime, Bloomberg’s expert also says that gold’s connection to the stock market is close to zero, meaning that “Bitcoin has been trading more like a leveraged version of beta than a digital version of gold.”
