Crypto asset manager Bitwise reported that Bitcoin’s 260-day log-level correlation with the S&P 500 reached approximately -0.62, its lowest level since 2015, while return correlation over the same period stood at +0.40. A portfolio simulation replacing 5% of equities with Bitcoin produced conflicting results depending on the timeframe: annualized volatility rose from 12.68% to 13.01% over 260 days but fell from 16.11% to 15.73% over 500 days. On the 115 days when the S&P 500 declined in the 260-day sample, Bitcoin also fell 76 times with an average loss of 1.03%, and during the 25 days when the index dropped more than 1%, Bitcoin declined 22 times.
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