Risk profile of crypto markets similar to oil and tech: Coinbase
Despite some touting crypto as a hedge against traditional markets, digital assets today share a similar risk profile to commodities such as oil and gas, and tech and pharmaceutical stocks, according to analysis from Coinbase’s chief economist.
The observation comes from a blog post from Coinbase chief economist Cesare Fracassi on July 6, noting that the “correlation between the stock and crypto-asset prices has risen significantly” since the 2020 pandemic.The economist referred back to his institute’s monthly insights report in May, which found that Bitcoin and Ethereum have similar volatility to commodities such as natural gas and oil, fluctuating between 4% and 5% on a daily basis. The most appropriate stock comparison to Bitcoin in terms of volatility.
