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.
Go deeper: House committee cites environmental toll of crypto mining