Investors have been perplexed by bitcoin’s inconsistent behaviour throughout the years. When rates rose and inflation skyrocketed in 2022, they thought that cryptocurrency would be a hedge against inflation. However, when signs of cooling started to appear, the cryptocurrency rose once more.
While bitcoin has occasionally behaved like a high-risk tech stock, BlackRock’s Mitchnick noted that this isn’t often how it trades during his remarks at the Bitcoin Investor Day conference on Friday in New York City.
He stated that historically, the average long-term connection between bitcoin and stocks has been nearly negative, with a little positive correlation. Like gold, there have been times when it has skyrocketed. In fact, they resemble each other quite well when their correlation charts are placed within a time series.
Source (CNBC)
