The increasing correlation between bitcoin and the Nasdaq stock index suggests that cryptocurrency should be considered a risky asset. This view is shared by analysts at the hedge fund Man Group.
Their report on digital currencies says that monetary tightening by central banks will inevitably lead investors to leave their technology companies for safer vehicles.
As evidence, the researchers used data on a new phase of Bitcoin weakening at the beginning of this week. At the moment, the Nasdaq-Bitcoin correlation index is 0.44.
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Moreover, in 2019, on the contrary, the cryptocurrency demonstrated independence from the stock indicator.
However, then BTC was increasingly used by small and large investors in speculative transactions.
That is why this asset becomes correlated with stock indices. Most likely, this trend will continue soon, and the dependence of bitcoin on other risky assets will increase, according to Man Group analysts.