[HN Gopher] Bitcoin correlation with stocks at 5-year low as reg...
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Bitcoin correlation with stocks at 5-year low as regulatory
crackdown takes toll
Author : paulpauper
Score : 19 points
Date : 2023-06-15 21:18 UTC (1 hours ago)
(HTM) web link (cryptonews.net)
(TXT) w3m dump (cryptonews.net)
| [deleted]
| paulpauper wrote:
| This overlooks the far worse or ominous situation: the
| correlation with the Nasdaq is only to the downside, plus a large
| beta multiple of 3x or more, not to the upside. Hence why the
| correlation is low, but it captures all of the downside of the
| Nasdaq. This is also why correlation can be misleading, or why
| correlation and diversification are not the same thing. People
| who think they are diversifying by buying a 'low ' correlated
| asset like Bitcoin are merely diversifying losses and not reaping
| any of the benefits of diversification. Indeed, Enron stock had a
| a low correlation with the S&P 500 in 2001-2002.
| NoboruWataya wrote:
| Yes, this is a really weird way to say the asset is taking a
| beating. I'm not familiar with "cryptonews.net" but I'm
| guessing it's pro-Bitcoin and this is an effort to put a
| positive spin on Bitcoin's current woes.
| taraharris wrote:
| The stock market is at or near a top, and I'm expecting a pretty
| massive reversal in the coming months. We are living in the midst
| of a synchronized global recession, as China's post-COVID
| reopening has failed. Rough times are ahead here in the US...
| cwkoss wrote:
| If bitcoin proves a reliable leading indicator for the broad
| stock market, trad-fi bros are going to be so mad.
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(page generated 2023-06-15 23:02 UTC)