Is bitcoin a hedge against collapse? Correlation with stocks and other assets.

by SpontaneousDisorder

Here are charts of the previous bitcoin manias.


The current crypto mania is occurring along side an intense mania for US stocks. The first parabolic peak in bitcoin occurred alongside one of the most significant stock peaks of the bull market and peaks in oil/precious metals.
The manias in 2013 were a bit more subtle in their connection to the stock market as they occurred during a period of strong momentum rather than toward the price peak. Perhaps the collapse of oil ahead of a stock correction helps explain that. The oil collapse was a pretty significant event in world markets. (and also coincided with a huge dollar rally)
Overall I think propensity to speculate in bitcoin/crypto in correlated with the propensity to speculate in financial assets in general. Which is to be expected since it is a pure speculative play with almost zero fundamental economic support.