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On Tuesday, Coinshares Investment strategist James Butterfill published a report which shows that bitcoin is a unique asset, but is “largely uncorrelated to other asset classes” like commodities and traditional stocks.<\/strong><\/p>\n Coinshares Investment strategist James Butterfill published a new report on August 18 that shows bitcoin (BTC<\/a>) is establishing itself as an investment store of value. Butterfill’s report notes that BTC<\/a> is “less correlated to the economic cycle” and the crypto asset is uncorrelated to other asset classes in the investment world.<\/p>\n One of the trends highlighted is how investors holding BTC<\/a> for one year or longer jumped from 30% in 2012 to 60% in 2020. Butterfill writes that Coinshares researchers “believe this trend of investor participation is likely to continue.”<\/p>\n “Since its creation following the financial crash in 2008, Bitcoin has seen meteoric – and volatile – growth,” the Coinshares report called “Bitcoin – In a Class of its Own” states.<\/p>\n “Many attempts have been made at boxing in bitcoin into the pre-existing frameworks of current asset classes, but due to its unique collection of similar yet often non-overlapping attributes, it never quite fits any established mould.”<\/p>\n Butterfill’s report adds:<\/p>\n Bitcoin perception is changing over time, its image as a money-laundering vehicle has subsided, with investors now taking a much keener interest in it. News story counts of potential money laundering were much more prevalent in 2013-14 but have since subsided, while counts of Bitcoin as an investment have become more of a focus.<\/strong><\/em><\/p>\n<\/blockquote>\n Butterfill details that during the early days (growth phase), BTC<\/a> behaved much like a tech stock, but going forward researchers at Coinshares think “bitcoin will act more like a store of value (SoV).” However, Butterfill’s report recognizes that in contrast to SoVs like gold and other precious metals, BTC<\/a> offers other beneficial functions.<\/p>\n The Coinshares Investment strategist pointed to the fact that the crypto asset offers programmable money functionality, the securitization of digital ownership, and traceable recordkeeping with immutability.<\/p>\n On Tuesday morning (Eastern Standard) the price of bitcoin (BTC)<\/a> touched a high of $12,473 before plummeting to a low of $11,800 temporarily. Crypto traders are still bullish after the recent -5.3% dump and many expected<\/a> the drop to happen prior to its fall.<\/p>\n Bitcoin has performed much differently than precious metals markets and traditional equities. The Standard & Poor’s 500-stock index (S&P 500) has jumped over 50%<\/a> since the mid-March market rout, otherwise known as ‘Black Thursday<\/a>.’ This week the S&P 500 touched its first all-time intraday high in the last six months.<\/p>\n Despite equities and the S&P 500’s recent performance, Coinshares does “not believe bitcoin fits any currently established asset class moulds.”<\/p>\n “Because of its characteristics (scarcity, liquidity, high uptime), evidence suggests investors are increasingly using it as a store of value,” Butterfill’s report concluded. “This has started a self-reinforcing process of financialisation which we believe will lead to increasing use as a store of value.”<\/p>\n What do you think about the assessment from Coinshares<\/em> Investment strategist? Let us know what you think in the comments section below. <\/strong><\/p>\n The post Report: Bitcoin Untied from the Economic Cycle, ‘Largely Uncorrelated to Other Asset Classes’<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n![\"Report:](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/08\/economiccycle.jpg\" "\\"Report:")
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