Crypto Long & Short: The Battle of the Yields

Researchers at the Kansas City Federal Reserve published a paper about bitcoin’s correlation with bonds and equities, with some unexpected results. TAKEAWAY: This study is particularly interesting in that it differs from studies that look at overall correlations over time. This one isolates times of financial stress, when you arguably most need a safe haven, and it finds that, during these times, bitcoin acts more like a risk asset and has positive (yes, positive) correlations with the S&P 500.