(Bloomberg) — Bitcoin’s correlation to stocks continued to strengthen as the largest cryptocurrency rebounded along other risk assets as fast-moving developments related to Russia’s invasion of Ukraine whipsawed investors.
The largest digital currency fluctuated in a range of about 14% on Thursday. A 60-day correlation between the digital token and S&P 500 currently stands at 0.6, out of a highest possible score of 1, indicating similar behavior.
“Crypto is slowly becoming a more institutional market,” Callie Cox, U.S. investment analyst at eToro, said by phone. “It’s gone from this speculative asset to an investment vehicle.”
Markets rebounded in U.S. afternoon trading when President Joe Biden announced stiff sanctions on Russia over its invasion of Ukraine.
Earlier, Bitcoin fell while gold was rising as investors sought traditional refuges, undercutting the often-touted argument from advocates that the cryptocurrency is now a digital version of the long-time haven asset.
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