Bitcoin and Dogecoin Correlation Spotlighted by Bloomberg Analyst

Emerging Patterns in Cryptocurrency Correlations

Amidst ongoing price volatility, patterns are emerging in the cryptocurrency market, particularly regarding correlations between digital assets and traditional financial instruments.

Strong Correlation between Bitcoin and Dogecoin

According to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, Bitcoin (BTC) and Dogecoin (DOGE) exhibit a strong positive correlation of 0.68. This suggests that Bitcoin's price movements significantly influence those of DOGE.

Downward Price Movement

This correlation is currently playing out, as both Bitcoin and Dogecoin have experienced a downward price movement. Interestingly, the declines occurred just hours apart, with Bitcoin leading the fall before DOGE followed.

Correlation with Traditional Assets

McGlone's analysis also reveals correlations between BTC and traditional assets. The S&P 500 has a modest positive correlation of 0.32 with BTC, indicating a degree of association with the stock market.

Weak Correlation with Gold and US Dollar

Gold and the US Dollar Index have weak correlations with Bitcoin, at 0.15 and -0.14, respectively. This suggests that Bitcoin has a limited relationship with gold and moves in the opposite direction of the dollar value.

Conclusion

Overall, the stronger correlations are currently seen within the cryptocurrency market, where BTC and DOGE share a close relationship. These correlations highlight the interconnectedness of the digital asset landscape and provide insights into potential market movements.