Cryptocurrency Q&A
What is the correlation between cryptocurrency & commodities?
What is the correlation between cryptocurrency & commodities?
Bianca
Tue Jul 16 2024
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6 answers
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Could you elaborate on the potential correlation between cryptocurrency and commodities? Are there any observable patterns or trends that suggest a direct link between the two asset classes? For instance, do commodity prices tend to rise or fall in tandem with cryptocurrency values? Do certain commodity market events trigger movements in cryptocurrency markets? Additionally, how do investors typically approach diversifying their portfolios with both commodities and cryptocurrencies, considering their different risk profiles and potential returns? I'm particularly interested in understanding if there's a strategic rationale for including both in a balanced portfolio.
6 answers
Maria
Wed Jul 17 2024
Cryptocurrencies and commodities have displayed a varying degree of correlation in recent years.
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SsangyongSpirited
Wed Jul 17 2024
In contrast, gold's correlation with Bitcoin during the same period is significantly lower, at just 0.15.
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SamsungShiningStar
Wed Jul 17 2024
A study conducted by the CFA Institute reveals an interesting trend in the correlation between Bitcoin and various commodities.
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Bianca
Wed Jul 17 2024
This disparity in correlation values could be attributed to silver's greater volatility, which may have led to a stronger alignment with Bitcoin's price fluctuations.
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Tommaso
Wed Jul 17 2024
According to the report, silver has emerged as the commodity most closely aligned with Bitcoin's price movements from October 2019 to October 2022.
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