Cryptocurrencies
Bitcoin Acts Less Like Digital Gold and More Like a Risky Stock
- U.S. stocks and Bitcoin are moving more closely together
- Crypto’s diversification benefits are a topic of much debate
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When Wall Street makes the case for crypto, it’s all about the benefits of diversification. But when markets go down, Bitcoin has an embarrassing habit of getting swept up in the selloff.
Bitcoin plunged as much as 11% on Monday as stock markets trembled in the wake of a potential default from China Evergrande Group. A correlation analysis shows that U.S. stocks and Bitcoin are moving more in lockstep, with the link between the two assets at the strongest level in a year.