The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
The Daily Hodl
No Result
View All Result

Bitcoin Up, Stocks Down With BTC Surpassing Gold As Top Investment This Year

by Daily Hodl Staff
May 1, 2020
in Bitcoin

Bitcoin is marching to the beat of its own drum as the week comes to a close.

With the Dow down 594 points, a 2.44% loss, and the S&P 500 down 83 points, a 2.87% loss, Bitcoin is up 2.92% at $8,708, according to COIN360 at time of publishing.

[the_ad id="93550"]

With equities suffering big losses in 2020 and gold up 7.83% on the year, BTC is now the most profitable investment by far, rising 21% from $7,203 at the start of 2020.

Although Bitcoin reacts to massive crashes in traditional markets, such as the widespread economic tumble on March 12th, veteran trader and crypto analyst Scott Melker says the numbers show BTC is clearly an uncorrelated asset overall.

“Correlation has a specific definition based on a mathematical formula with regards to finance. By this definition, Bitcoin and the market are not correlated…

The idea of ranking correlated assets was developed by Markowitz when he presented Modern Portfolio Theory. Using a math formula, you can compare any 2 assets on a scale of -1 to 1. 1 means correlated – if one asset moves 5%, so will the other. -1 means inversely correlated.

If one asset moves 5%, the other goes -5%. A score of 0 or close means the assets are not correlated. In its 11-year history, Bitcoin has been a .15 – not correlated. This is the closest to 0 of any asset. It recently hit .57, moderately correlated, for a brief time.

The problem with Modern Portfolio Theory is that everything moves nearly to a 1 in a global crisis – including other ‘safe haven’ assets like gold and silver. And Bitcoin still only reached a .57 – moderate correlation. This is math and defines correlation.

[the_ad id="95413"]

There are 4 assets in legacy markets – stocks, bonds, commodities and currencies. All are correlated to various degrees. They are all valued based on similar factors, like corporate earnings, GDP and interest rates. Bitcoin does not find it’s valuation in any of these things.

As Mark Yusko pointed out in our podcast conversation (most of what I have said here was shared!), Bitcoin finds value from Millennial adoption, government regulation, network value and other completely separate factors. By definition it is uncorrelated…

This is the very reason that all investors should hold some Bitcoin – it offers idiosyncratic risk rather than systematic risk like other assets. Even if it is a riskier asset, having it in a portfolio reduces overall portfolio risk due to this lack of correlation.

And that is why Bitcoin and stocks are not technically correlated.” 

Despite the lack of a technical correlation, Melker warns that BTC is not a hedge against a global crisis.

Instead, he believes it’s a hedge against hyperinflation and the mismanagement of fiat currency.

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Dim Dimich

Submit a Press Release

Industry Announcements

  • R0AR Introduces Unified DeFi Platform for Token, Liquidity, and NFT Staking
    June 17, 2025
  • Avail Goes Full Stack To Capture $300 Billion Global Blockchain Infra Market
    June 17, 2025
  • Fans Hash Launches Zero-Barrier Cloud Mining With Daily Payouts and Global Pool Access
    June 16, 2025
  • Universal Digital Inc. Announces Bitcoin Treasury Strategy Across North America and Asia
    June 16, 2025
  • FIFA Rivals Launches Worldwide, Bringing Non-Simulation Arcade Football Action to Mobile Devices
    June 12, 2025
  • Polemos Announces TGE and a Game-Changing Strategic Partnership With BUFF Accelerating Web 3.0 Adoption
    June 12, 2025
  • Bitpanda Opens the Gate to Web 3.0 With Vision (VSN)
    June 12, 2025
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$104,724.06
$104,724.06
3.67%
Ethereum
$2,519.36
$2,519.36
5.14%
BNB
$647.74
$647.74
1.63%
Solana
$147.75
$147.75
5.81%
XRP
$2.16
$2.16
6.29%

Spotlight

  • $947,000 Allegedly Stolen From Wells Fargo ATM Machines As Employee Scrambles To Cover Trading Losses: Report
    June 10, 2025
  • Nasdaq Includes XRP, Stellar (XLM), Solana (SOL) and Cardano (ADA) in Firm’s Crypto Index
    June 10, 2025
  • BlackRock Bitcoin Fund Flies Past $70,000,000,000 Faster Than Any Other ETF in History: Bloomberg Analyst
    June 10, 2025
  • Man Sentenced to Federal Prison for Leading Widescale Check Fraud Scheme That Resulted in $165,743 in Losses
    June 10, 2025
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Altcoins • Futuremash • Financeflux •
Blockchain • Regulators • Scams •
HodlX • Press Releases

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2025 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise

© 2025 The Daily Hodl