Why Bitcoin Trades Like A Stock
One of the features that early crypto investors would talk about is something called correlation - specifically, the lack of it. Correlation refers to the relationship between different financial assets - if the gold price goes up, and the price of oil also goes up, you could say those prices are positively correlated. For investors looking to diversify their portfolios, correlation isn’t always a good thing. What they want is something that doesn’t move in the same direction as everything else. And for a while, it looked like cryptoassets might fit the bill. Over the past year, as inflation rates have begun to rise- the price of crypto has fallen in line with stocks. What does this mean for crypto’s supposed independence from other markets? Bloomberg reporter Vildana Hajric joins this episode to explore these questions. See omnystudio.com/listener for privacy information.