#BTCvsMarkets

BTC vs. Markets:

Bitcoin (BTC) is currently trading around $83,300, showing some recent correlation with traditional markets. Historically, BTC had little correlation with stocks, but since 2020, this has changed, particularly with risk assets like the S&P 500 and Nasdaq.

Correlation: In high-liquidity environments, BTC tends to move similarly to tech stocks. During market stress, like the 2022 Fed rate hikes, this correlation became even more apparent.

Volatility: Bitcoin remains significantly more volatile than major stock indices. Daily swings of 5-10% are not uncommon for BTC, contrasting with the 1-2% seen in indices like the S&P 500. This higher volatility makes Bitcoin a higher-risk, higher-reward asset.

Performance: While long-term returns for BTC have outperformed stocks over the past decade, this comes with extreme drawdowns. Investors should be aware of this volatility when comparing Bitcoin to traditional market investments.