Bitcoin’s fantastic triple-digit returns so far this year have captured investors’ attention, while also fueling fears of a bubble. And analysts say investors tempted to use cryptocurrencies as a hedge should beware that its characteristics may make it unsuitable even as a part of a diversified portfolio.
“Bitcoin and U.S. stocks don’t move together on a daily basis. They are basically independent of each other and I don’t see any fundamental reason for bitcoin and stocks to have a negative relationship. In this case, it is a bit like gold, it has zero correlation to stocks,” Bilello said.