WS #15480
Bitcoin is showing signs of decoupling from traditional risk assets, rising over 84% despite multi-year highs in nominal and real Treasury yields. This divergence is supported by institutional inflows, such as Strive Asset Management's $169 million Bitcoin purchase, and a cooling of risk appetite that is paradoxically benefiting crypto as a hedge. However, crypto-linked equities like Robinhood are dipping as general risk sentiment cools, indicating a divergence between the asset class and its public market proxies.
Crypto and Risk Asset Decoupling
Bitcoin is showing signs of decoupling from traditional risk assets, rising over 84% despite multi-year highs in nominal and real Treasury yields. This divergence is supported by institutional inflows, such as Strive Asset Management's $169 million Bitcoin purchase, and a cooling of risk appetite that is paradoxically benefiting crypto as a hedge. However, crypto-linked equities like Robinhood are dipping as general risk sentiment cools, indicating a divergence between the asset class and its public market proxies.