Bitcoin Is No Longer a Hedge—Implications for Your Investment Portfolio

Bitcoin's Market Behavior: Bitcoin is increasingly behaving like a high-beta tech stock, showing a strong correlation with AI equities and the S&P 500, particularly during market downturns and spikes in volatility.

Gold's Divergence: Unlike Bitcoin, gold has recently diverged from speculative assets, maintaining its status as a more effective hedge and portfolio diversifier, especially as financial conditions tighten.

Risk Amplification: The rising correlation of Bitcoin with stocks amplifies risk during volatile market conditions, reducing its effectiveness as a hedge compared to gold.

Performance Comparison: Year-to-date, gold has risen 54%, while Bitcoin has declined by 9%, highlighting a significant shift in their roles as inflation hedges.