Bitcoin has broken new year-to-date highs while Stocks and bonds have been moving down. BTC is the least correlated to other assets right now.

This past week we had a rally to the surprise of us all, after a worse-than-thought inflation number Stock markets were going down and the DXY (Dollar-Index) going up. In a normal world you would have said that Crypto is going down too as for the whole past year we have been highly correlated to the stock markets and very negatively correlated to DXY. That was not the case as we all know.

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BTC correlation to other assets from James V. Straten

Instead BTC jumped to new year-to-date highs of 2023 at over $25k and stock markets continued their crabbing downwards. As we can see on the chart above, BTC is at a correlation of 0.24 to the NASDAQ, last year we even were briefly above the 0.90 mark, same goes for other like the S&P500. While the whole past year we were at a high negative correlation to DXY, now this negative correlation just sits at -0.19.

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BTC in comparsion to other assets from DocumentingBTC

This is also a reason that Bitcoin has been market as the best assets for the year 2023 so far, by even Goldman Sachs. In comparison to other assets, BTC is up a whopping 50% over the year and other stocks also had a positive year so far but nowhere near BTC. NASDAY is up about 17%, while SP500 is at just 8% up year-to-date and Gold is not even up at all.

The decoupling of Bitcoin to stocks in one of the thing that make Crypto extraordinary, while we may be going down at a faster pace (which was not even true for last year as stocks had worse drawdown than BTC), we will also go up faster than stocks once the demand is on. The beauty of Volatility.