Yahoo Finance’s David Hollerith joins the Live show to discuss bitcoin's correlation with assets such as gold and stocks.

Video Transcript

DAVID HOLLERITH: Brian, outside of the optimistic price action we're seeing in Bitcoin today-- it's above 20k, which is obviously a key point-- there are two other interesting developments. One is that Bitcoin's correlation to gold has been rising in recent weeks. And currently, it's sitting at yearly highs. On the flip side, we've seen the correlation with the NASDAQ and S&P has dropped slightly over the past two weeks.

Now, the other side of this is that crypto has led the stock market in recent weeks, but yesterday, it did not rally as much as analysts had anticipated. So it seems like the trend has flipped, actually, and now stocks are, again, leading crypto. As it stands today, Bitcoin still moves more like stocks than gold. Yet it's notable to point out that given that a lot of the volatility in the market has been reduced for Bitcoin, not other parts of the market like bonds and stocks, for instance, this whole rally is sort of showing a shift in what we're seeing.

JULIE HYMAN: Yeah, it definitely is showing a shift in what we're seeing, even as we've seen that volatility in other areas. Thank you so much, David. Appreciate it. Interesting about the gold correlation as well.