A declining correlation between bitcoin (BTC) and equities is rejuvenating the case for investors to include the asset in a more diversified portfolio, crypto market research firm K33 noted in a report.
BTC’s 30-day price correlation with the tech-heavy NASDAQ index fell to 0.26, its lowest level since December 2021, according to K33 data. BTC’s correlation with the S&P 500 index also plummeted last month to levels not seen since late 2021.
Bitcoin, the largest cryptocurrency by market capitalization, has lured investors over the years as an asset whose price moves independently from other investment classes, most prominently from equities, making it convenient as part of a diversified portfolio.
