Franklin Templeton "Bitcoin (BTC) Shows Stronger Correlation with Tech Stocks than Gold"
Summary
- Franklin Templeton stated that Bitcoin shows a higher correlation with tech stocks.
- The correlation coefficient between Bitcoin and gold is reported to be low, below 0.3.
- In contrast, the correlation coefficient with the Nasdaq index has risen to 0.7.
Global asset management firm Franklin Templeton has diagnosed through a report that Bitcoin (BTC) shows a stronger correlation with tech stocks than with gold.
According to Crypto Briefing, a media specializing in virtual assets (cryptocurrencies), Franklin Templeton Digital Assets stated, "An analysis of data over the past three years shows that the price correlation between Bitcoin and gold is relatively weak," adding, "The correlation coefficient of the two assets mostly remained below 0.3 based on the 90-day moving average."
It continued, "This means that the two assets generally show separate trends," explaining, "On the other hand, it showed a much stronger correlation with the Nasdaq index, with the correlation coefficient soaring to the level of 0.7 over the past three years."
Furthermore, it added, "This means that Bitcoin shows a trend more similar to tech stocks than to gold, a traditional safe asset."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
