Ecoinometrics - Bitcoin is decoupling from risk assets

Bitcoin correlations report May 2023

The past three months have seen some pretty big changes in the correlations between Bitcoin and other risk assets. Let’s dig into the details.

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Bitcoin correlations report

The takeaway 

Before we go into the different categories of assets and how Bitcoin relates to them here are the key takeaways for this month:

• Bitcoin is decoupling from the SP500 and the NASDAQ. If this trend continues BTC is about to become once more uncorrelated to the stock market.

• Over the past 3 months BTC has moved from being uncorrelated to bond yields back to being slightly negatively correlated. Probably a sign Bitcoin investors are anticipating a pivot from the Fed sooner than the bonds market.

• Jack Dorsey’s Block company has seen the biggest change in correlation to BTC over the past 90 days. It went from being strongly correlated to being uncorrelated.

You can see a summary of that in the table below.

For a selection of assets you get the current 90-day rolling correlation to Bitcoin as well as the net change in the correlation score over the same period.

Now let’s dig in all that with more charts.