Might Crypto be a Hedge After All?
Stocks are having another rocky week, yet cryptocurrencies seem to be doing OK. Could it be that they are actually acting as a hedge against stock market risk? In the very short term, the answer might be yes. As I write this, bitcoin is up just over 3% for the past week while the S&P 500 (SPX) is down about 0.9% over that span. Items that rise when others fall are wonderful hedges. But one week is hardly a meaningful timespan. We want hedges to display that sort of behavior over a longer time span, not just a random week. If we look at year-to-date (which admittedly is only 2 weeks at this point), we see bitcoin ... (full story)