© Reuters
By Sam Boughedda
Bernstein analysts said Friday that the site is a safe haven in times of crisis.
Analysts explained in a note titled “Bitcoin vs. Gold vs. Equities correlation in 3 charts” that correlations have reversed for risky assets in the past few days since the US banking crisis, and that this “could be a critical signal for investors to watch.”
“Correlation with equities has increased as the policy response to the pandemic has led to increased correlation between assets, with cheap money supporting different asset classes,” the analysts write.
They added that with the rise in and monetary tightening, the and stocks were initially correlated to the downside, but since the demise of FTX, “cryptocurrency has come back stronger than stocks and recently since the American banking crisis, it diverged even more”.
“The correlation with is skyrocketing, as it has during times of crisis,” analysts say.
Overall, Bernstein believes that with the worsening banking crisis in the US, bitcoin is more likely to behave as a risk-free asset and that after FTX is gone, “crypto is back to its roots”.