Bitcoin is a macro asset in that it’s now a part of the international market. But not all macro property are extremely correlated. As worry subsides (which it would, at some point), given the distinct worth propositions of equities and crypto, we’re prone to see correlations head again to decrease ranges, supporting the narrative of an “alternative” macro asset. Even earlier than then, as the mud settles on the latest crypto crashes, as the outlook for international equities continues to worsen and as the threat of holding {dollars} shifts larger, we may see buyers calibrate the relative downsides of asset teams. The ensuing flows of funds are prone to change correlations and narratives, driving a brand new momentum that impacts correlations even additional.
