Key points
- Highly volatile and speculative.
- Correlation with tech stocks has increased.
- Sensitive to liquidity conditions.
Example
When real yields rise and liquidity tightens, crypto often sells off faster than equities; easing financial conditions can spark sharp rebounds.
In history
Bitcoin fell from ~$69k in Nov 2021 to near $16k after 2022 rate hikes and crypto credit failures, then recovered above $40k by late 2023.
Related terms