With volatility falling across the board in crypto this month, BEQUANT’s Head of Research Martha Reyes and her team have analyzed the correlation between Bitcoin and other asset classes and the percentage of BTC holders that have kept their coins for over a year in this month’s Monthly Quant report. 

BTC correlation to traditional assets

Martha Reyes, Head of Research at BEQUANT, commented “Bitcoin’s correlation to markets and BTC-related equities peaked in January as volatility rose but it has since waned, with gold expressing a negative correlation to BTC since.” 

“Bitcoin’s correlation to other asset classes is not usually strong or long-lasting. This makes it appealing for diversification purposes for sophisticated retail and institutional investors alike.”

BTC supply for holders +1 year 

Martha Reyes, Head of Research at BEQUANT, commented “The percentage of Bitcoin that has been inactive for over a year is approaching record highs at 63%. Long-term holders are remaining steady despite recent volatility.”

“These levels of inactive supply have only been witnessed twice before; in early 2016 and in mid-2020. Both times preceded a bull run, although the accumulation process can last a number of months.” 

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