Why does Bitcoin still follow stock market trends despite being 'digital gold'?

I’ve been holding BTC for a while and I’m genuinely curious: Bitcoin is often pitched as “digital gold”—an uncorrelated asset, a hedge against inflation, a safe store of value. But over the past few years, it still seems to rise and fall in sync with traditional equities, especially tech stocks and the broader market. If it’s supposed to be a hedge, why does it react so closely to Fed policy, interest rate hikes, and general market sentiment? Is it just because institutions are treating it like a high-risk asset class? Or are we still too early in adoption for BTC to behave like a true uncorrelated asset? Would love to hear thoughts—especially from those who’ve seen multiple cycles. submitted by /u/heady_dev [link] [comments]

Jun 20, 2025 - 02:54

I’ve been holding BTC for a while and I’m genuinely curious: Bitcoin is often pitched as “digital gold”—an uncorrelated asset, a hedge against inflation, a safe store of value. But over the past few years, it still seems to rise and fall in sync with traditional equities, especially tech stocks and the broader market.

If it’s supposed to be a hedge, why does it react so closely to Fed policy, interest rate hikes, and general market sentiment? Is it just because institutions are treating it like a high-risk asset class? Or are we still too early in adoption for BTC to behave like a true uncorrelated asset?

Would love to hear thoughts—especially from those who’ve seen multiple cycles.

submitted by /u/heady_dev
[link] [comments]