Bitcoin’s Connection with Global Risk Assets Still Prevails

It is reported that Arthur Hayes, the former CEO of BitMEX, said in the latest interview with Crypto Banter that Bitcoin has not really got rid of its connecti…

Bitcoins Connection with Global Risk Assets Still Prevails

It is reported that Arthur Hayes, the former CEO of BitMEX, said in the latest interview with Crypto Banter that Bitcoin has not really got rid of its connection with global risk assets. Although it has rebounded from below $16000 to above $24000 recently, the market is still waiting for a “correlation” moment, which means that it may experience another decline, including Bitcoin. Then once this correlation is over, the encryption field will be favored. (dailyhodl)

Former CEO of BitMEX: Bitcoin has not really got rid of its connection with global risk assets

Interpretation of the news:


Arthur Hayes, the former CEO of BitMEX, has stated in a recent interview with Crypto Banter that the connection between Bitcoin and global risk assets still exists. As per the report, although the cryptocurrency has seen a surge from below $16,000 to above $24,000, it is yet to experience the “correlation” moment. This indicates that another decline is on the cards, including Bitcoin. However, after this phase is over, the crypto market will be favored.

It is no secret that the cryptocurrency market has been volatile, with investors at times having to combat significant losses. The correlation between Bitcoin and other assets, particularly global risk assets, has been observed for a considerable time now. Hayes is of the view that despite the surge in Bitcoin’s value, investors need to be mindful of its correlation with other assets. This correlation has seen Bitcoin follow the trend of traditional assets such as gold or stocks.

However, once the correlation moment is over, the crypto market will bounce back. It is important to understand that the correlation between Bitcoin and global risk assets, and therefore its vulnerability, does not indicate a failure of the cryptocurrency. Instead, it is indicative of an evolving market, underscoring the crypto market’s susceptibility to the fluidity of the wider financial ecosystem.

The correlation moment predicted by Hayes can be seen as an opportunity for investors to diversify their portfolios, which can lead to long-term growth. Bitcoin and other cryptocurrencies have already marked their space in the financial industry, indicating their ability to sustain even in volatile and uncertain times. During COVID-19, while traditional markets stumbled, the crypto market saw unprecedented growth. This reflects the cryptocurrency market’s resilience and its ability to offer investors a safe haven in times of crisis.

In conclusion, the crypto market is yet to break its correlation with other global risk assets, and investors need to be aware of it. The wait for the correlation moment could lead to another dip, even for Bitcoin. However, it is important to remember that the crypto market’s foundations remain strong, and once the correlation moment is over, the crypto market will bounce back. The future of Bitcoin and other cryptocurrencies remains bright, offering investors an opportunity to diversify their portfolios with a truly de-centralized asset class.

Overall, the crypto market is poised to play an increasingly important role in the global financial ecosystem. Hayes’ analysis is a sound reminder of the interconnectivity of different financial assets and the importance of understanding and monitoring the risks associated with them.

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