Bitcoin yield is not suitable as a substitute for gold

Infographic of February 28, 2025

Infographic DIW Weekly Report 10/2025 with the title: Correlation of Monthly Returns from Bitcoin, Gold, Stocks, and Bonds (2015–2025) Description: The infographic presents a bar chart comparing the correlation coefficients of Bitcoin with different asset classes, including gold, stocks (DAX, S&P 500), and government bonds from Germany and the USA. The x-axis represents the correlation values, ranging from -0.2 to 0.4. The correlation of Bitcoin with gold is negative (<0), meaning their prices tend to diverge. Bitcoin shows a positive correlation (>0) with stock indices like DAX and S&P 500, indicating they often move in the same direction. The correlation with government bonds is also represented but appears weaker compared to stocks. A concluding note states that Bitcoin exhibits a strong correlation with stock market returns, making it unsuitable as a safe-haven asset like gold when diversifying stock-heavy investment portfolios. Visual Elements: The chart uses different colors to distinguish Bitcoin, gold, stocks, and bonds. A legend or labels indicate which asset each bar represents.

© DIW Berlin

Topics: Financial markets , Monetary policy

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