The price of Bitcoin (BTC) “couldn’t be more uncorrelated” with the exchange, says Anthony Pompliano, as data shows that BTC is outperforming macro assets.
In one Series of tweets On October 26, the co-founder of Morgan Creek Digital, also known as “Pomp”, criticized critics for his allegations that Bitcoin was a poor store of value.
Pomp On Bitcoin Safe Haven: “The Market Is Showing”
Pompliano uploaded a chart from the behavior analysis platform Santiment, where Bitcoin hit 0 for a 30-day correlation with the SP 500.
“It couldn’t be any less correlated than it is now,” he added in comments.
Moving correlation diagram between Bitcoin and SP 500. Source: Anthony Pompliano / Twitter
Continuing, Pompliano noted that Bitcoin has outperformed macro asset returns since the coronavirus collapse in March this year.
How did Bitcoin fare during an economic downturn? Outperformed stocks, bonds, gold, oil, and almost everything else. It also has little or no correlation over a significant period of time, “he summarized.
“Bitcoin is the ultimate safe haven and the market is showing it.”
Valued around $ 13,150, the BTC / USD pair has so far offered investors an 83% annual return, up from 24% for gold and 6% for the SP 500, data from the on-chain monitoring resource confirms . Aslant.
For Pompliano, The previous correlation between Bitcoin and these assets was merely a short-term phenomenon caused by the March events.
“During the liquidity crisis, all asset correlations tend to be 1. This was temporary and happened to gold, stocks, etc.,” he wrote.
Bitcoin vs. Macro Asset Performance. Source: Skew
No more correlation?
As Cointelegraph reported, A consensus has been formed that not only is Bitcoin giving up its correlation with stocks and others, but that this will be a definitive turning point that cannot be reversed.
Among the proponents of the idea is Willy Woo, the statistician and creator of the data resource Woobull, who doubles Bitcoin on his own sooner rather than later.
“The decoupling is up to us”, tweeted last week.
“It makes sense that BTC also correlates in short-term deals. but not in the long term. BTC is a safe haven, only the ‘risk’ (meaning that it is very new) distorts that fact. “