DEXCEX

Crypto Correlation Matrix

Correlation measures how closely two assets move together on a scale from −1 (perfect inverse) to +1 (perfect lockstep). The reference matrix below reflects typical long-term 90-day rolling correlations between the largest crypto and macro assets.

Live correlation matrix

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Computing correlations from live price data…

Reference correlation matrix

Long-term averages — short-term values can swing significantly during macro events.

BTCETHSOLGoldS&P 500DXY
BTC1.000.850.780.150.45-0.35
ETH0.851.000.820.100.50-0.30
SOL0.780.821.000.050.48-0.28
Gold0.150.100.051.00-0.10-0.55
S&P 5000.450.500.48-0.101.00-0.40
DXY-0.35-0.30-0.28-0.55-0.401.00

Key takeaways

  • BTC ↔ large-cap altcoins: 0.75–0.90. Most majors are effectively a leveraged BTC bet.
  • BTC ↔ S&P 500: ~0.4–0.6 since 2022. Crypto increasingly trades as a risk asset alongside equities.
  • BTC ↔ Gold: low and variable. The "digital gold" thesis only shows up in narrow regimes.
  • BTC ↔ DXY: persistently negative — a stronger dollar weighs on BTC.
  • Correlations spike toward +1 in liquidity crunches: in a market-wide deleveraging, diversification across crypto evaporates.

Using correlation for portfolio building

True diversification requires assets with low or negative correlation. Stacking BTC, ETH and SOL is not diversification — it's concentration into a single risk factor. To meaningfully reduce drawdowns, mix in stablecoins, gold exposure, or counter-trend strategies.

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