Jan 25, 2022 - Economy & Business

Charted: Bitcoin's 2021 gains wiped out (again)

Source: CoinDesk; Chart: Axios Visuals
Source: CoinDesk; Chart: Axios Visuals

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.

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