Bitcoin's correlation with other assets has increased over the past five years. The cryptocurrency's correlation to the Russell 3000 index was 0.36. Compared with inflation, bitcoin had a negative correlation over the past five and 10 years.
Bitcoin's correlation increasing with other assets
Bitcoin's monthly returns have been much more volatile than other assets. Over the past five years, the digital currency's standard deviation was 93%. During that period, the Nasdaq 100 index's standard deviation was more than 20%, and it was nearly 18% for the Russell 3000 index.