Bitcoin behaves less like gold, more like tech stocks: Franklin Templeton report
While there are times when the two assets move in the same direction due to big global events, this isn’t the norm.
Key Takeaways
- Bitcoin shows stronger correlation with tech stocks rather than gold.
- Bitcoin’s correlation with the Nasdaq has reached as high as 0.7 in the past three years.
Bitcoin shows a stronger correlation with tech stocks than gold, according to Franklin Templeton Digital Assets’ new report, “When Gold Zigged, Bitcoin Moonwalked,” which discusses the common narrative that Bitcoin is “digital gold.”
Franklin’s digital asset team analyzed three years of data and found that the price correlation between Bitcoin and gold is weak. Research shows that Bitcoin’s correlation with gold rarely exceeds 0.3 over rolling 90-day periods, meaning the two assets generally move independently.
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