Bitcoin is a macro asset in that it’s now a part of the worldwide market. However not all macro belongings are extremely correlated. As worry subsides (which it can, sooner or later), given the distinct worth propositions of equities and crypto, we’re more likely to see correlations head again to decrease ranges, supporting the narrative of an “various” macro asset. Even earlier than then, because the mud settles on the current crypto crashes, because the outlook for international equities continues to worsen and because the danger of holding {dollars} shifts increased, we may see buyers calibrate the relative downsides of asset teams. The ensuing flows of funds are more likely to change correlations and narratives, driving a brand new momentum that impacts correlations even additional.
