Bitcoin price’s rising correlation with tech weighs on hedge appeal

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On Friday, tech stocks staged a mini rebound and almost at the same time, Bitcoin price reversed course too.

A familiar tune was playing out in the market Friday: technology stocks staged a mini rebound and almost exactly at the same time, Bitcoin price reversed course too, spotlighting the cryptocurrency’s tendency to move in lockstep with other risk assets. The world’s largest digital token was up 0.6% on Friday as of 10:57 a.m. New York-time. Seasoned market veterans might not have been surprised to see that the Nasdaq, which is heavily-weighted toward big tech companies, also advanced. 

“Bitcoin is following the usual near-term pattern, which is a relatively high correlation with Nasdaq and other technology stocks,” according to Matthew Sigel, head of digital assets research at VanEck.

Practically all week, cryptocurrencies have twisted and turned in the same way technology…

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