Although Bitcoin has lost 10% of its value during the first 3 months of 2020, it has outperformed traditional stock markets. During the same period, the Nikkei 225 index fell by 20%, the FTSE by 14% and the S&P 500 by 18%.
Experts say Bitcoin has also been dragged into the downward trend, undermining the belief that it is a non-correlated asset. Alpha5 derivatives exchange founder Vishal Shah has said:
"I think correlation across assets is still quite high, a telltale sign of when macro matters more than micro."
Former Wall Street analyst Siddhartha Jha points out:
"The lack of correlation to equities was a bit premature to announce. We had periods of high correlation, for example, in 2018, when Bitcoin fell along with equities in December of that year. We have had other periods of higher correlation to gold."
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