McRib’s Return Sparks Unusual Correlation with Bitcoin
With the highly anticipated return of the McRib sandwich next month, crypto enthusiasts have been quick to draw an unusual correlation between its availability and global asset prices, including Bitcoin. McDonald’s typically brings back the limited-time offering as part of its marketing strategy, leading some to speculate that there may be a connection between the return of the McRib and market trends.
COO for Ritholtz Wealth Management, Nick Magguilli, pointed out that when the McRib sandwich was available, the S&P 500 enjoyed a slightly higher average daily return. However, it’s important to note that correlation does not imply causation.
Bitcoin’s Correlation with the McRib
Since 2016, McDonald’s has reintroduced the McRib every year, and during four of those years, the price of Bitcoin has risen. The returns following the reintroduction of the McRib have varied, with peak returns ranging from just above 50% to over 200%. Notably, in 2017 and 2021, these returns coincided with bull rallies in the crypto market.
However, there have also been instances where Bitcoin experienced a downturn after the reintroduction of the McRib. In both 2018 and 2022, Bitcoin’s price plummeted following the sandwich’s return.
Bitcoin Winter Blues
The timing of McDonald’s reintroduction of the McRib towards the end of the year has led to observations about Bitcoin’s performance during this period. CoinGlass data shows that Bitcoin has historically performed well in October but has been less positive in November and December.
Some analysts attribute the urge to find correlations like these to market boredom. As market participants search for explanations for price movements, they may latch onto unconventional connections like the McRib.
Hot Take: A Tasty Meme, But Not Much More
While the correlation between the availability of the McRib and Bitcoin’s performance is intriguing, it’s likely just a delicious meme. The lack of a clear trend or causality suggests that there isn’t a significant relationship between these factors. So, while you may enjoy indulging in a McRib, don’t expect it to predict the future of Bitcoin.
Source: MarketWatch
By
By
By
By