Bitcoin’s Not A Hedge Anymore—Here’s What That Means For Your Portfolio
Bitcoin (CRYPTO: BTC) is behaving more like a high-beta tech stock than a hedge, with its correlation with AI equities rising to record levels during recent market drawdowns.
According to Dennis DeBusschere, analyst at 22V Research, Bitcoin’s correlation with the S&P 500 has surged to one of its highest historical readings during the nascent equity pullback.
This trend is especially pronounced during spikes in implied volatility, as measured by the CBOE Volatility Index, or VIX. Bitcoin’s negative correlation with the VIX — which tends to deepen when market stress increases — underscores its evolving profile as a risk-on asset.
“Bitcoin has become more equity-like over the past five years, putting it into a more institutional friendly framework, but its tendency to trade with equity momentum when vol spikes reduces its potential …
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