Why Does Bitcoin Trade Like a Tech Stock: Experts Weigh In
Bitcoin is increasingly behaving like a volatile tech stock, influenced by traditional financial market factors such as interest rates, tariffs, and inflation data. This correlation has intensified since the SEC approved spot Bitcoin ETFs in early 2024, allowing institutional investors to treat Bitcoin as a risky asset akin to stocks. Following significant economic events, Bitcoin's price movements align closely with stock market trends; for instance, it dropped 5.5% after tariffs were imposed, paralleling declines in major indices. Analysts suggest that Bitcoin's role has shifted from an independent asset to one that reacts to broader economic conditions. While some investors view this as a temporary phase driven by institutional trading, others maintain that Bitcoin's long-term value lies in its potential as a hedge against fiat currency.
