Not a hedge, just a high beta tech stock

prolly nothing...

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The_Krakenite said:
From my understanding... BTC is often viewed more of a long-LEAPs used to hedge against inflation.
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If you bought it over 50K, how is it working out for you? As long as the market was going up, every bull was a genius, now that we are entering the bear phase, well, an adjustment is required.
 
GlobalMacro90 said:
I'll add that while I totally agree that BTC isn't a hedge, it is uncorrelated with stocks and bonds. Now in a crisis when equities are getting killed then BTC will go down too (hence not a hedge).

In fairness to bitcoin though, this is true of a lot of stuff. Other stocks, corporate bonds, high yield bonds, all commodities except gold, all currencies except USD, Yen get smacked in a real crisis.

BTC is uncorrelated to stocks tho. Adding an uncorrelated asset (that has >150% annualized returns) to a portfolio is like quant magic.

Attached is rolling 52-week correlation between BTC and SPX. Notice this oscillates around 0 aka not correlated. MAYBE you can argue that it has a very small positive correlation, but its very small

Point is - while not a hedge still super useful from a portfolio standpoint
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The correlation increases with vol.
 
johnarb said:
prolly nothing...
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Correct. Last 5 days action:

High to Low to High:

SPX: -7% to +4%

BITO: -22% to +10%

BTC: 43K to 33.5K to 38.3K (too lazy to do the %, but close to BITO's)

Same shit, sometimes with a few hours delay due to cryptos being traded 24/7. NOT A HEDGE...
 
Time to revisit this thread!! It seems the stock market are bleeding quite a bit of red

If only there was a hedge against the stock market crash??!!

Yesterday, Bitcoin was up 15% and today again it's up :D



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