Cryptocurrencies
Lack of Correlation for Bitcoin Provides Little Relief as Markets Sell Off
- Cryptocurrencies’ safe haven aspect proves to be unfounded
- Lira-crisis-related demand not enough to boost crypto prices
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It might seem like Bitcoin’s ties to broader financial markets are strengthening as other risky assets also sell off, but cryptocurrencies are still dancing to their own tune -- even if the song is starting to sound like a requiem.
Enthusiasts often say fund managers who want to diversify should buy digital coins since they’re uncorrelated to other assets. That lack of a relationship has proven true even in the roiled markets of recent days but, unfortunately for crypto investors, it’s not because digital assets have gained while the broader market sells off. Rather, it’s because the cryptocurrency selloff has dragged on for longer and sunk even deeper.