Bitcoin’s correlation with stocks is at its lowest since 2021 as investors grapple with the cryptocurrency's narrative shift

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Bitcoin is on pace to post its third positive month in a row, but its narrative has been on a wild ride over the past few weeks.

Bitcoin has climbed steadily in March and is on pace to post its third positive month in a row , but its narrative has been on a wild ride over the past few weeks. The cryptocurrency has spent much of the past two years trading in lockstep with equities, but that trend has been coming apart since the beginning of 2023. The break became more noticeable in March, as investors rediscovered bitcoin's appeal as alternative banking system as the regional banking crisis unfolded.

"These correlation data show that, at least recently, bitcoin has indeed performed more like a safe-haven asset than a risk asset," Alex Thorn, head of firmwide research at Galaxy Digital, said in a recent note.

 

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