#BTCvsMarkets Bitcoin's current price is $86,771.60, with a 2.56% increase, reflecting a $2,167.49 gain. Its market capitalization stands at $1.76 trillion.
When comparing Bitcoin to the stock market, there's no straightforward correlation. Both assets are speculative, often traded on price speculation rather than intrinsic value. Some investors view Bitcoin as a store of value or "digital gold," while others trade it for profit like stocks.
*Key Differences:*
- *Correlation Coefficient*: Measures how closely two assets move together, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).
- *Market Influence*: Bitcoin's price movements can be influenced by macroeconomic factors like interest rates and inflation, similar to stocks.
*Recent Trends:*
- *90-Day Rolling Correlation*: Bitcoin's correlation with NASDAQ and NDXT (tech sector) indices fluctuates over time, with periods of positive and negative correlation.
- *Increased Alignment*: Both correlations showed an upward trend in recent months, indicating growing alignment between Bitcoin and stock indices ¹.
*Comparison with Other Assets:*
- *Gold*: Often considered a safe-haven asset, gold's price movements can negatively correlate with stock markets, whereas Bitcoin's correlation is more complex.
- *Stocks*: Bitcoin's volatility and potential for high returns draw parallels with stocks, but its decentralized nature sets it apart.
Keep in mind that Bitcoin's relationship with traditional markets is still evolving and influenced by various factors, including regulatory changes and global economic shifts ².
