Ethereum JPY (ETH-JPY)

Crypto: Positive bitcoin-stock correlation is 'here to stay'

Bitcoin (BTC-USD) is finding stable ground following a streak of volatility in recent months since reaching an all-time price high earlier in 2024. Additionally, the crypto space has seen gains in ethereum (ETH-USD) around the rollout of spot ether ETFs after the Securities and Exchange Commission (SEC) approved such product offerings in late May. IDX Advisors Chief Investment Officer Ben McMillan shares his cryptocurrency outlook based on ETF inflows, comments made by traditional investors like Peter Thiel, and whether President Biden or former President Trump will be able to win over the crypto crowd in this coming election. "If you look at the correlation of Bitcoin to stocks in general... it was very low kind of pre-COVID. And then after Covid, particularly after 'money printing,' you saw that correlation spike. And that makes a ton of sense. We think that's here to stay. Now that doesn't necessarily mean it's going to be as high as it has been recently forever," McMillan tells Market Domination Overtime. "It's running at kind of a 0.6 correlation. But we're not going to go back to the days of bitcoin being zero or even negatively correlated to risk assets. So... investors need to understand that positive correlation to risk assets of bitcoin is here to stay. It's something to factor in when you think about it within your portfolios." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.