Bitcoin’s explosive gains could spell good news for stocks

#Bitcoin's explosive gains could spell good news for stocks

  • REUTERS/Lucas Jackson

    Bitcoin is trading at a record high on Monday, up 3.92% at $3,356 a coin.

  • These kinds of astronomical gains in bitcoin, it turns out, are correlated with a strong showing by stocks too, according to Nautilus Investment Research.
  • To be more specific, the firm says that of the 18 previous instances when bitcoin returned at least 30% in a month, the S&P 500 was higher 15 times two months later and 17 times three months out, averaging gains of 3.61% and 4.66%, respectively.
  • Nautilus doesn’t offer a reason, but it does note that it could just be that bitcoin is a “barometer for animal spirits in the markets.”
  • In other words, when traders are going nuts about a highly-speculative investment like bitcoin, that same risk-loving attitude might turn up among the folks who trade stocks.

Bitcoin is trading at a record high on Monday, up 3.92% at $3,356 a coin. It has gained…
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