Bitcoin's Correlation With World Stocks Dips, While Orange Prices Show Strong Link

According to CryptoPotato, Bitcoin's 30-day correlation coefficient with world stocks dipped to -0.23 in mid-November, marking its lowest level since the beginning of the 2020 pandemic. Despite this, Bitcoin's annual correlation to stocks in 2020 reached its highest on record, emphasizing its potential for diversifying stock-heavy portfolios. Interestingly, a growing correlation has been observed between Bitcoin and global orange prices. From January 2020 to August 2023, orange prices increased by 180%, while Bitcoin rallied 230%. This trend suggests that Bitcoin's price movements may reflect U.S. dollar inflation. A decrease in orange supply in 2023 due to weather changes led to higher prices, paralleling Bitcoin's upcoming supply halving, which is expected to affect its price. The U.S. Agriculture Department predicts that Florida will produce only 15.9 million boxes of oranges in 2023, a 70% drop from the 2020-21 season. Production in Brazil and Mexico also fell due to warmer weather caused by El Nino. This situation illustrates the economics supporting Bitcoin's impressive price gains over its 15-year history. Currently, Bitcoin price markets on cryptocurrency exchanges are factoring in an upcoming decrease in the BTC supply, which will occur next year during the four-year supply halving.