{"id":12053,"date":"2022-07-06T08:56:28","date_gmt":"2022-07-06T08:56:28","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/risk-profile-of-crypto-markets-similar-to-oil-and-tech-coinbase\/"},"modified":"2022-07-06T08:56:30","modified_gmt":"2022-07-06T08:56:30","slug":"risk-profile-of-crypto-markets-similar-to-oil-and-tech-coinbase","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/risk-profile-of-crypto-markets-similar-to-oil-and-tech-coinbase\/","title":{"rendered":"Risk profile of crypto markets similar to oil and tech: Coinbase"},"content":{"rendered":"
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\u2019s chief economist.\u00a0<\/p>\n
The observation comes from a blog post from Coinbase chief economist Cesare Fracassi on July 6, noting that the \u201ccorrelation between the stock and crypto-asset prices has risen significantly\u201d since the 2020 pandemic. <\/p>\n
\u201cWhile for the first decade of its existence, Bitcoin returns were on average uncorrelated with the performance of the stock market, the relationship increased quickly since the COVID pandemic started,\u201d stated Fracassi. <\/p>\n
\u201cIn particular, crypto assets today share similar risk profiles to oil commodity prices and technology stocks.\u201d<\/p><\/blockquote>\n
The economist referred back to his institute\u2019s 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.<\/p>\n
\nSince 2020, the correlation between crypto and the stock market has risen and with recent market movements we see how the market expects crypto assets to become more and more intertwined with the rest of the financial system in the future. (4\/5)<\/p>\n
\u2014 Cesare Fracassi (@CesareFracassi) July 5, 2022<\/a><\/p><\/blockquote>\n
Bitcoin, which is often likened to \u201cdigital gold,\u201d had a far riskier profile compared to its real-world precious metal counterparts such as gold and silver, which see daily volatility closer to 1% and 2%, according to the research. <\/p>\n