The “decoupling” of Bitcoin from stocks? Here’s why it will or won’t happen – CNET – ApparelGeek

Good morning! Welcome to Distributed Ledger, our weekly crypto newsletter that hits your inbox every Thursday. I’m Frances Yue, crypto reporter at CNET, and I’m going to bring you the latest and greatest digital assets from this week so far.

Find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should cover.

Crypto at a Glance

BitcoinBTC USD,
+1.97%
rose 3.2% over the past seven days, trading at around $30,221 on Thursday, according to data from CoinDesk. Ether ETHUSD,
+1.42%
fell 1.6% over the seven-day period to around $1,818. Dogecoin DOGEUSD Meme Token,
+2.28%
gained 2.2% while another dog-themed token, Shiba Inu SHIBUSD,
3.62,
increased by 1.4% compared to seven days ago.

Cryptographic metrics
The biggest winners

Price %return in 7 days

Waves

$9.55

73.9%

Chain

$0.18

69.2%

Evmos

$3.58

65.3%

Helium

$8.41

11.8%

Synthetix Network Token

$2.82

10.8%

Source: CoinGecko as of June 2
The biggest declines Price %return in 7 days

Terra Luna Classic

$0.000097

-45.9%

STAGE

$1.03

-25.3%

BitDAO

$0.63

-18.7%

Everdome

$0.02

-17.7%

Convex finance

$8.7

-17.3%

Decoupling?

Over the past year, bitcoin has mostly traded in tandem with US stocks, especially growth stocks. Both have suffered so far this year, as investors worry about soaring inflation, signs of a slowing economy and the Federal Reserve’s tightening monetary policy.

Crypto investors have long hoped for a “decoupling” between the two assets, which had shown some signs of happening recently. At the end of last week, bitcoin fell while US stocks rose. The cryptocurrency rallied while stocks fell earlier this week.

However, these signals appeared to be fleeting, as the crypto and stocks traded lower on Wednesday and edged higher on Thursday.

Some analysts said the brief “decoupling” was partly due to some tech stock investors, who had also been trading crypto as a speculative asset, halting their activity in the space as the collapse of Terra has shaken their confidence in the digital asset market.

After Terra, once one of the most popular blockchains, crashed last month, “traditional investors who would invest in tech stocks are a little worried. [about crypto] because of this idea you know I might make a bad bet and my investment might drop to zero,” Budd White, chief product officer and co-founder of crypto exchange Tacen, told Distributed Ledger in an interview. .

Bitcoin fell to $25,402 on May 12 following the incident. “So maybe that washed weak hands, and [bitcoin] is still in price ‘normalization’ mode,” said Mark Connors, head of research at digital asset management firm 3iQ.

Connors also attributed the decoupling in part to bitcoin’s declining volatility, as adoption increases while the cryptocurrency has a supply cap of 21 million.

Bitcoin’s recent volatility is well below its four-year average, while S&P 500 and Nasdaq volatility is high relative to historical levels.

Still, cryptocurrencies could “remain highly correlated to equities during this period of the Fed’s interest rate hike cycle” as economic uncertainty continues to weigh on investors’ risk appetite , said Edward Moya, senior market analyst at OANDA.

“I want to see decoupling for the right reasons,” Tacen’s White said. “The right way to get the right decoupling signal is for investors to look at crypto not as a risky asset where they can get quick gains, but to start looking at the other value and utility that is building on the market the longest time,” White said.

Gemini’s layoff plan

Billionaire twins Cameron and Tyler Winklevoss said on Thursday that 10% of jobs at their cryptocurrency exchange and custodian, Gemini Trust, would be cut, according to a blog post.

The layoffs were part of an assessment of the company amid “turbulent market conditions that are expected to persist for some time”, they said.

“This is where we are now, in the contraction phase settling into a period of stasis – what our industry calls ‘crypto winter’. All of this has been further aggravated by the current macroeconomic and geopolitical turmoil. We are not alone,” Winklevosses said.

Gemini made the move as bitcoin’s price more than halved from its all-time high in November, while the collapse of stablecoin TerraUSD last month dealt another blow to the industry.

Crypto companies, funds

Shares of Coinbase Global Inc.. PIECE OF MONEY,
+7.14%
rose 8.1% to $74.20 on Thursday, and they are up 6.3% over the past five trading sessions. by Michael Saylor MicroStrategy Inc.
MSTR,
+3.28%
rallied %Q4.2hoursday to $248.6, and it is up 14.9% over the past five days.

mining company Riot Blockchain Inc.
RIOT,
+6.44%
the shares rose 8.1% to $7.04, and 4.8% in the past five days. Shares of Marathon Digital Holdings Inc.
MARA,
+2.87%
gained 4% to $9.58, with a loss of 6.1% over the past five days. Another miner Ebang International Holdings Inc.. EBON,
+1.76%,
gained 2.4% to $0.97, with a 4% gain over the past five days.

Overstock.com Inc.
OSTK,
+7.32%it is
shares jumped 7.9% to $33.20. The shares gained 4.9% over the five-session period.

Shares of Block Inc.
SQ,
+6.78%,
formerly known as Square, rose 8% to $88.41, with a 5.9% gain for the week. Tesla Inc.. TSLA,
+5.69%
shares gained 5.3% to $779.57 and were up 10.2% over the past five sessions.

PayPal Holdings Inc.
PYPL,
+7.07%
gained 5.7% to $87.19, and it was up 8.4% over the five-session period. Nvidia Corp.
NVDA,
+6.80%
shares rose 6.6% to $195.20, a 9.5% gain over the past five trading days.

Advanced Micro Devices Inc.
AMD,
+7.29%
the shares rose 7.4% to $108.70 on Thursday, when they were up 10.2% from five trading days ago.

Among crypto funds, ProShares Bitcoin Strategy ETF
BITO,
+0.80%
rose 0.8% to $18.79 on Thursday, while Valkyrie Bitcoin Strategy ETF
BTF,
+1.03%
was up 0.8% at $11.69. VanEck Bitcoin Strategy ETF
XBTF,
+0.94%
gained 0.9% to $29.53.

Grayscale Bitcoin Trust
GBTC,
+3.24%
traded up 2.6% to $19.97.

Required readings



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The “decoupling” of Bitcoin from stocks? Here’s why it will or won’t happen – CNET – ApparelGeek


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