Overview
- A new research note from NYDIG’s Greg Cipolaro estimates roughly 25% of Bitcoin’s price variation is tied to equities.
- Bitcoin’s 90-day correlation with software shares has climbed since a record above $126,000 in October, alongside higher links to the S&P 500 and Nasdaq.
- NYDIG attributes the co-movement to both assets being treated as long-duration, liquidity-sensitive exposures during risk-on and risk-off swings.
- The firm cites ETF flows, derivatives positioning, network activity, and policy developments as distinct forces that drive the majority of Bitcoin returns.
- The note says Bitcoin currently behaves more like a risk asset than a hedge such as gold, yet still offers diversification benefits in portfolios.