Analyst: S&P 500 and Bitcoin are macro-correlated – but that’s not a bad thing

According to the latest thesis, Bitcoin is now correlated with the price of gold. From a fundamental point of view, analysts think this makes sense: Both BTC and the precious metal are extremely scarce assets that are not controlled by a central authority and can be “found” by anyone with the right materials. However, a prominent cryptocurrency analyst is certain that Bitcoin’s true correlation is that of the S&P 500 – the leading stock index in the US. While this does not fit the thesis that BTC is an uncorrelated asset, the analyst says that the existence of the correlation actually represents a bullish trend for cryptocurrencies.

BTC is likely to outperform stocks and other markets: analysts
While the S&P 500 and Bitcoin may be correlated in terms of trends and overall direction, that doesn’t mean BTC won’t outperform stocks or any other asset class. According to Raoul Pal, Chief Executive of Real Vision and former head of European hedge fund sales at Goldman Sachs, fundamentals and technicals show that Bitcoin will be by far the best investment for the next two years:
“In fact, only one asset offset the growth of the G4 balance sheet. There are no stocks, no bonds, no raw materials, no loans, no precious metals, no miners. Only one asset has performed massively better over almost every time horizon: Yes, Bitcoin. My beliefs about Bitcoin are increasing every day. I’m already irresponsibly long. I think now that it may not even be worth owning any other asset as a long-term asset allocation. “