Here’s How Bitcoin Has Behaved Like a US Tech Stock; Is It Still a Hedge?

Bitcoin, and crypto assets in general, have become more correlated with tech stocks in recent months, according to research.

Bitcoin appears to have lost its property as a store-of-value asset or inflation hedge. This has been evidenced by its third-quarter performance, which has been highly correlated to U.S. tech stocks.

Messari researcher Kunal Goel posted a chart on Oct. 4 revealing the extent to which Bitcoin markets and tech stocks have fallen in tandem.

In a report on Bitcoin’s performance for the third quarter, Goel said, “Bitcoin largely lost its inflation hedge and store-of-value narratives in the market after falling 72% from ATHs.”