Strategy cofounder Michael Saylor has explained that Bitcoin is trading like a risk asset in the short term because it is supposedly the most liquid and salable asset on the planet.
"In times of panic, traders sell what they can, not what they want to," Saylor explained.
Saylor also believes that Bitcoin's correlation with stocks is not a long-term one.
This comes after Barstool Sports founder Dave Portnoy recently questioned why Bitcoin is trading like U.S. stocks despite the fact that is is supposed to be an uncorrelated currency. The viral social media post has attracted more than four million views, prompting plenty of discussion.
Tomiwabold OlajideAs reported by U.Today, JPMorgan recently opined that Bitcoin's digital gold narrative was crumbling since the cryptocurrency has been persistently trading in lockstep with U.S. equities.
Many naysayers claim that Bitcoin is a typical high beta risk proxy that has nothing in common with gold.
However, Bitcoin proponents of the likes of Barefoot Mining founder Bob Burnett claim that the cryptocurrency does not always track equities.
"So, Bitcoin has a tendency to track the market initially as the market changes direction. But, once you zoom out to longer windows, you will see that it diverges," he said.
Bitcoin's surprising strength
The U.S. stock market endured some of the biggest drops on record amid the tariff mayhem. However, according to trader Justin Spittler, Bitcoin has held "incredibly well" relative to the flagship S&P 500 stock market index. He thinks that Bitcoin will outperform stocks if the market stays risk-off.
BTC
Vladislav Sopov
Dan Burgin