Bitcoin correlation with tech stocks overblown: NYDIG
NYDIG’s Greg Cipolaro says that Bitcoin and tech stocks aren’t converging and are likely just reacting to macroeconomic conditions rather than trading in tandem.
Bitcoin’s recent parallel movement with US software stocks is more of a case of shared exposure to macro events, rather than any structural convergence, according to financial services company NYDIG.
In the past week, Bitcoin (BTC) rallied alongside US software stocks, leading many to claim the cryptocurrency was a proxy for the sector, Greg Cipolaro, the head of research at NYDIG, said in a note on Friday.
“While the visual fit of their indexed price is compelling, the conclusion that Bitcoin and software equities have structurally converged, or that they share common exposure to themes such as AI or quantum risk, is overstated,” he said.