Insights

High correlation between Bitcoin and high yield corporate debt, small caps and growth stocks in 2022

exchange68September 13, 2024

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Quick Take

The majority of assets suffered during 2022, including Bitcoin — which spent the year with a high correlation with high-yield corporate debt, as well as with small-cap and growth stocks.
Red shows positive correlations, and blue shows negative ones.
Bitcoin’s correlation with small caps was 0.59, the correlation with high-yield corporate debt was 0.64, and small growth stocks were 0.63.
These assets could all be considered risk-on or have greater potential over the long term but are more vulnerable to negative events and bearish sentiment.

Asset Returns in 2022: (Source: Fidelity) — Asset Correlations in 2022: (Source: Fidelity)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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