Does Bitcoin’s beta spike signals danger ahead for crypto investors?
This article is written by Jean-Martial, BeInCrypto French Team Leader
In brief:
- Bitcoin’s increasing correlation and high beta with stock markets mean it now amplifies market volatility.
- Data shows Bitcoin’s beta reacts more violently than stocks to market movements.
- Analysts warn that Bitcoin now behaves like a high-risk tech stock.
For years, Bitcoin evangelists claimed the cryptocurrency would protect investors from turmoil in the traditional markets. But a growing body of evidence now suggests the opposite: Bitcoin is becoming more tightly bound to the very stock markets it was supposed to hedge against — and the consequences could be brutal. The key culprit? Beta.
A worrying shift
Data…
