Bitcoin has reached a record high of $112,000, sparking concerns that stocks may not follow suit. Historically, the two markets have moved in tandem, with tech stocks being particularly closely tied to bitcoin. However, recent years have seen more divergences between their price movements.
Experts point out that both stocks and cryptocurrencies are considered risky assets, but a growing trend of divergence is emerging. This could be due to differences in investor sentiment and market dynamics.
While the bitcoin rally may signal a shift in investor attention, it’s unclear whether this will translate to broader stock market gains. As investors continue to weigh the risks and rewards of different asset classes, it’s essential to monitor these divergences and their potential implications for the markets.
Source: https://www.marketwatch.com/story/why-bitcoin-has-rallied-to-a-112-000-record-high-while-stocks-are-wobbling-135373cf