Bitcoin has lost nearly half its value since its November peak, wiping away hundreds of billions — and any remaining suspicion that the cryptocurrency isn't correlated to risk assets like equities.
State of play: Bitcoin’s latest selloff parallels the recent stock market declines stemming from the Federal Reserve’s hawkish pivot (it even rode the same rollercoaster equities did Monday).
Markets Insider charted the correlation between bitcoin and stocks throughout recent market corrections — and notes that “for now, bitcoin is less of a hedge against inflation, and is instead a volatile risk-on asset that does well when stocks do well, and vice versa.”
Worth noting: Despite the staggering losses of the last two months, bitcoin is still five times higher than its price at the beginning of 2020.