With Covid-induced monetary policies sparking inflation in economies all around the world, central bankers were forced to raise rates at unprecedented speeds, severely impacting the capital markets.
As a result, Bitcoin’s valuation – much like the speculative tech stocks of Netflix, Google, and Amazon – took a significant hit in 2022. It was a correlation that persisted until the beginning of 2023.
Under ordinary circumstances, Bitcoin typically correlates very tightly with the Nasdaq index. However, that correlation could come into question now that Bitcoin is solidifying its position as an antifragile asset during times of uncertainty.