Bitcoin’s fluctuating relationship with the S&P 500 reveals its unreliable status as a hedge during market downturns. Kazmierczak notes that institutional investors view Bitcoin primarily as a risk-on asset rather than a stable safe haven.
The variance in correlation—ranging from -0.2 to 0.4—indicates Bitcoin’s inconsistent hedging capabilities. Overall, it suggests that Bitcoin cannot replace traditional hedges like gold or bonds despite moments of significant performance.
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