@jeancamp
The rising correlation between Bitcoin and the S&P 500, reaching up to 80-83% recently, suggests a deepening integration with traditional finance. Driven by institutional adoption via ETFs and macroeconomic factors like Fed rate cuts, Bitcoin increasingly mirrors stock market trends. However, crypto-specific risks (e.g., hacks) and regulatory uncertainties indicate it’s not fully bound, retaining some independence. This hybrid status offers diversification potential but ties crypto to equity volatility, challenging its hedge role.
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