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    Bitcoin Signalling Major Risk Off Trade

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    Rajveer Rawlin
    Asset correlations suggest the recent sell off in bitcoin could trigger a risk off trade in other risky assets such as stocks, commodities and currencies like the Euro.

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    © All Rights Reserved
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    Bitcoin Signalling Major Risk Off Trade

    Uploaded by

    Rajveer Rawlin
    20 views2 pages
    Asset correlations suggest the recent sell off in bitcoin could trigger a risk off trade in other risky assets such as stocks, commodities and currencies like the Euro.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Asset correlations suggest the recent sell off in bitcoin could trigger a risk off trade in other risky assets such as stocks, commodities and currencies like the Euro.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views2 pages

    Bitcoin Signalling Major Risk Off Trade

    Uploaded by

    Rajveer Rawlin
    Asset correlations suggest the recent sell off in bitcoin could trigger a risk off trade in other risky assets such as stocks, commodities and currencies like the Euro.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Bitcoin Signalling Major Risk Off Trade?

    rajveersmarketviews.blogspot.in/2018/03/bitcoin-signalling-major-risk-off-trade.html

    A look at the relationship between bitcoin returns and other asset class returns over the last
    year throws up some interesting details. There is a weak inverse relationship between
    bitcoin returns and the 10 year bond yield changes but the relationship between other asset
    class returns and bitcoin returns is not statistically significant. This suggests a continued
    melt down in bitcoin is a precursor to higher bond yields which could trigger a move out of
    risky assets:

    Bitcoin Returns Vs Other Asset Class Returns Correlation Significance

    S & P 500 0.156 0.273

    Ten Year Bond Yield -0.340 0.015

    Euro 0.034 0.813

    Gold 0.047 0.743

    Copper -0.160 0.261

    Crude -0.180 0.207

    A look at the relationship of bitcoin itself with other asset classes over the last year reveals
    some additional info. We can see that bitcoin shows a strong positive relationships with
    most asset classes and the ten year bond yield and a strong negative relationship with
    copper. This suggests that the recent sell off in bitcoin could be a precursor to a major risk
    off trade:

    Bitcoin Vs Other Asset Classes Correlation Significance

    S & P 500 0.860 0.000

    Ten Year Bond Yield 0.530 0.000


    1/2
    Euro 0.673 0.000

    Gold 0.476 0.000

    Copper -0.879 0.000

    Crude Oil 0.800 0.000

    2/2

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