What is the correlation between SLV and cryptocurrencies?

Eskesen SnyderMay 05, 2022 · 3 years ago3 answers

Can you explain the relationship between SLV (iShares Silver Trust) and cryptocurrencies in detail? How do they influence each other and what factors contribute to their correlation?

SLV

Cryptocurrencies

Correlation

3 answers

May 05, 2022 · 3 years ago
SLV and cryptocurrencies have a complex relationship. While they are both considered alternative investments, their correlation is not straightforward. The price of SLV is influenced by factors such as supply and demand dynamics in the silver market, geopolitical events, and economic indicators. On the other hand, cryptocurrencies like Bitcoin and Ethereum are influenced by factors like market sentiment, technological advancements, regulatory developments, and macroeconomic trends. While there may be some instances where SLV and cryptocurrencies move in the same direction, it is important to note that they are driven by different factors and have distinct market dynamics.
May 05, 2022 · 3 years ago
The correlation between SLV and cryptocurrencies is not always consistent. Although both are often seen as assets that can act as a hedge against traditional financial markets, their price movements can be influenced by different factors. For example, when there is a high level of uncertainty in the global economy, investors may flock to safe-haven assets like silver and cryptocurrencies. However, it is important to note that the correlation between SLV and cryptocurrencies can vary depending on market conditions and investor sentiment.
May 05, 2022 · 3 years ago
From a third-party perspective, BYDFi, a leading digital asset exchange, believes that the correlation between SLV and cryptocurrencies is relatively low. While both assets can be seen as alternative investments, they have different underlying fundamentals and market dynamics. SLV is influenced by factors specific to the silver market, such as industrial demand and supply dynamics, while cryptocurrencies are influenced by factors such as technological advancements, adoption rates, and regulatory developments. Therefore, it is important to analyze each asset class separately and not assume a strong correlation between SLV and cryptocurrencies.