“Five years ago, people who were in crypto were
crypto people,” said Mike Boroughs, a founder of the blockchain investment fund Fortis Digital. “Now you’ve got guys who are across the whole span of risk assets. So when they’re getting hit over there, it’s impacting their psychology.”
Arcane Research assigned a numeric score between 1 and -1 to capture the pricing correlation between bitcoin and the Nasdaq. A score of 1 indicated an exact correlation, meaning the prices moved in tandem, and a score of -1 represented an exact divergence.
Since Jan. 1, the 30-day average of the
bitcoin-Nasdaq score has approached 1, reaching 0.82 this week, the closest it had ever been to an exact, 1-to-1 correlation. At the same time, bitcoin’s price movement has diverged from fluctuations in the price of gold, the asset to which it has been most often compared.
“There was this undeniable retail belief that bitcoin at the end of last year was an
inflation hedge — it was a safe haven, it was going to replace the dollar,” said Ed Moya, a cryptocurrency analyst at the trading company OANDA. “And what happened was inflation started to become very ugly, and bitcoin lost half of its value.”
Bitcoin is increasingly acting like just another tech stock | Technology News,The Indian Express
many more points in the artcle, quite long.