The argument has long existed — some bitcoin supporters have touted the cryptocurrency as “digital gold,” a hedge against inflation and a store of value.
What’s more, the 60-day correlation between bitcoin and S&P 500 reached 0.54, the highest since at least 2010, the early days of the cryptocurrency. Specifically, the 100-day correlation between bitcoin and tech stocks represented by the Nasdaq Composite COMP reached a local high of around 0.47 on Friday, the highest level since October 2020.
“Towards the second half or end of last year, I think bitcoin really got caught up with the macro environment,” Jason Lau, chief operating officer at crypto exchange OkCoin said. “News about the Fed, news about COVID, news about whatever … especially with the inflation expectations, really fed into sort of that narrative.”