Bitcoin, and crypto assets in general, have become more correlated with tech stocks in recent months, according to research.
Bitcoin appears to have lost its property as a store-of-value asset or inflation hedge. This has been evidenced by its third-quarter performance, which has been highly correlated to U.S. tech stocks.
Messari researcher Kunal Goel posted a chart on Oct. 4 revealing the extent to which Bitcoin markets and tech stocks have fallen in tandem.
In a report on Bitcoin’s performance for the third quarter, Goel said, “Bitcoin largely lost its inflation hedge and store-of-value narratives in the market after falling 72% from ATHs.”
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