Bitcoin (BTC) and Ethereum’s (ETH) price action has been similar to that of tech stocks since the end of the pandemic, Bloomberg News reported.
According to the report, the 40-day correlation between Bitcoin and Nasdaq is at 0.6945, the highest it has ever been.
As a result, some analysts are beginning to opine that Bitcoin might not be the diversifier that many of its advocates have made it to be.
Correlation could lead to price decline
One such advocate is Arthur Hayes, a co-founder of BitMEX. Hayes recently predicted that BTC’s price could reach as high as $1 million. However, in a new opinion post on Medium, he discussed the buy or sell argument and the current correlation between the crypto and stock markets.
According to Hayes, this is not good for crypto because it is supposed to be a hedge. He added that it would be unwise to advise buying crypto in preparation for a NASDAQ meltdown when the correlation between the two is so high.
However, Hayes believes that the tech s
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