Summary
- Bitcoin’s returns increasingly align with shifts in the stock market.
- The cryptocurrency’s rising correlation with equities lessens bitcoin’s role as a diversification tool.
- Gold, by contrast, is shining this year as a safe-haven asset, effectively flipping the “digital gold” narrative promoted by cryptocurrency advocates on its head.
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By James Picerno
Bitcoin may or may not become a global standard for digital payments in the years ahead, but it looks like a good proxy for assessing the financial market’s appetite for risk.
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TMC Research is the research division of The Milwaukee Company, a registered investment advisor based in Thiensville, Wisconsin that provides wealth management services and manages the Brinsmere Funds ETFs.
