Skip to content
We are glad to be a part of your success.
facebook
twitter
instagram
linkedin
ATEL Trading & Exchange
Call Support +234 818 8888 403
Email Support info@atelexchange.com
Location Rehoboth Plaza, Egbeda
  • Home
  • About Us
    • Career
    • Videos
  • Products and Services
    • CCTV Installation
    • ALTECHO School
    • ALTECHO Farm
  • Trading Currencies
    • Buy
    • Sell
  • Blog
  • Login/Register
  • Contact Us

Bitcoin Untied from the Economic Cycle, ‘Largely Uncorrelated to Other Asset Classes’

Home > Blog > Bitcoin Untied from the Economic Cycle, ‘Largely Uncorrelated to Other Asset Classes’

Bitcoin Untied from the Economic Cycle, ‘Largely Uncorrelated to Other Asset Classes’

Posted on August 20, 2020 by eromosele
0

Coinshares Investment strategist James Butterfill published a report which shows that bitcoin is a unique asset, but is “largely uncorrelated to other asset classes” like commodities and traditional stocks.

Coinshares Investment strategist James Butterfill published a new report on August 18 that shows bitcoin (BTC) is establishing itself as an investment store of value. Butterfill’s report notes that BTC is “less correlated to the economic cycle” and the crypto asset is uncorrelated to other asset classes in the investment world.

Report: Bitcoin Untied from the Economic Cycle, 'Largely Uncorrelated to Other Asset Classes'

One of the trends highlighted is how investors holding BTC for one year or longer jumped from 30% in 2012 to 60% in 2020. Butterfill writes that Coinshares researchers “believe this trend of investor participation is likely to continue.”

Report: Bitcoin Untied from the Economic Cycle, 'Largely Uncorrelated to Other Asset Classes'

“Since its creation following the financial crash in 2008, Bitcoin has seen meteoric – and volatile – growth,” the Coinshares report called “Bitcoin – In a Class of its Own” states.

“Many attempts have been made at boxing in bitcoin into the pre-existing frameworks of current asset classes, but due to its unique collection of similar yet often non-overlapping attributes, it never quite fits any established mould.”

Butterfill’s report adds:

Bitcoin perception is changing over time, its image as a money-laundering vehicle has subsided, with investors now taking a much keener interest in it. News story counts of potential money laundering were much more prevalent in 2013-14 but have since subsided, while counts of Bitcoin as an investment have become more of a focus.

Report: Bitcoin Untied from the Economic Cycle, 'Largely Uncorrelated to Other Asset Classes'

Butterfill details that during the early days (growth phase), BTC behaved much like a tech stock, but going forward researchers at Coinshares think “bitcoin will act more like a store of value (SoV).” However, Butterfill’s report recognizes that in contrast to SoVs like gold and other precious metals, BTC offers other beneficial functions.

The Coinshares Investment strategist pointed to the fact that the crypto asset offers programmable money functionality, the securitization of digital ownership, and traceable recordkeeping with immutability.

Report: Bitcoin Untied from the Economic Cycle, 'Largely Uncorrelated to Other Asset Classes'

On Tuesday morning (Eastern Standard) the price of bitcoin (BTC) touched a high of $12,473 before plummeting to a low of $11,800 temporarily. Crypto traders are still bullish after the recent -5.3% dump and many expected the drop to happen prior to its fall.

Bitcoin has performed much differently than precious metals markets and traditional equities. The Standard & Poor’s 500-stock index (S&P 500) has jumped over 50% since the mid-March market rout, otherwise known as ‘Black Thursday.’ This week the S&P 500 touched its first all-time intraday high in the last six months.

 

Despite equities and the S&P 500’s recent performance, Coinshares does “not believe bitcoin fits any currently established asset class moulds.”

“Because of its characteristics (scarcity, liquidity, high uptime), evidence suggests investors are increasingly using it as a store of value,” Butterfill’s report concluded. “This has started a self-reinforcing process of financialisation which we believe will lead to increasing use as a store of value.”

What do you think about the assessment from Coinshares Investment strategist? Let us know what you think in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. atelexchange.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

At Altecho Trading and Exchange Limited- ATEL, we give you news, opinions, advice and research on Crypto-currency (eCurrency, digital currency), computer/general security issues and the latest internet threats.

Credit:  Jamie Redman+Atel

Share on Facebook Share
Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share

Leave your comment with us on Facebook
We'd appreciate.

Tags: africannews.com, blogspot, chinanews.com, entertainment, linda ikeji, punch newspaper, sport, sunnewspaper, tvc

Cryptocurrency Videos

ATEL-looking for the best deals?

Looking For the Best Deals?

ATEL-looking for the best deals?

RSS Currency News – Nigeria

  • Rich couple and doctor plotted to traffic man to UK to harvest kidney for daughter
    … ,400 or £7,000 in Nigerian Naira plus the promise of work …
  • Do You Have News to Share? Get It Published.
    With EIN Presswire press release distribution services you will reach decision makers and journalists plus get valuable SEO benefits.
  • TIME TO BRING OUT NAIRA NOTES  
    … Central Bank of Nigeria’s (CBN) Naira Redesign policy. Since  … dislocated. Now that the Nigeria Labour Congress (NLC) has …  associated with the new currency redesign policy. Buying and … nightmare without the local currency, and the electronic platforms …

Bill Gate speaks about Crypto currency ( TBC)

Follow Us On Facebook

This message is only visible to admins.

Problem displaying Facebook posts.
Click to show error

Error: Server configuration issue

Altecho’s Bragging Right

Altecho Trading & Exchange Limited (ATEL) can arguably boast as one of the fastest paying e-currency trading and betting company in Nigeria. Click here to trade cryptocurrency or visit our office. FREE Wifi available, get paid instantly and we make faster exchange, anytime anywhere... That's why we are the best!
Quick Contact
Rehoboth Plaza, 3rd Avenue, Opposite A Close, Gowon Estate Ipaja, Lagos, Nigeria
+234 818 8888 403
info(a)atelexchange.com

Follow Us

ATEL on Instagram

Username field is empty.

Follow us on Twitter

Tweets by @atelexchange
Copyright © 2018 All Rights Reserved. | WordPress Theme: Enlighten by Accesspress Themes

ALTECHO TRADING & EXCHANGE LIMITED (ATEL) PROVIDES THE SERVICE OF BUYING AND SELLING OF E-CURRENCIES ONLY, AS SUCH, ALL CURRENCY TRANSACTIONS ARE ONLY TRANSACTED ONLINE.

1. We do not sell recharge card printing, visa, lotteries or give a job offer in anyway.
2. If any person direct you to pay into any of our account for such services, kindly disregard OR verify by telephone on: +23481 8888 403, chat with our online live support OR send a confirmation email to: support@atelexchange.com
3. For payment into any of our bank accounts that is above Fifty thousand Naira [NGN50,000.00], please call first, telephone: +23481 8888 403 to verify the needful.
4. ATEL shall not be liable of or responsible for any loss or damage arising from any ignorance as mentioned above OR negligence of Terms of Use.

Terms of Use.