Bitcoin is a 'risk' rather than 'safe' asset, say JPMorgan strategists

[Fawpac2]

It is more appropriate to characterize bitcoin as a "risk" asset rather than a "safe" asset, according to JPMorgan strategists.

This is because of how bitcoin has behaved over the past year against equity, JPMorgan strategists led by Nikolaos Panigirtzoglou said in a note published Friday. Since March 2020, the correlation between bitcoin and S&P500 has increased, said the strategists.

Gold's correlation with S&P500 has also been predominantly positive. Therefore, "both bitcoin and gold could be more characterized as 'risk' rather than 'safe' assets," said the strategists, who believe investors prefer these assets because they are "alternative" options rather than safe or "hedge" assets.
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