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The Crypto Winter Is Here

Monitors display Coinbase and Bitcoin signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Wednesday, April 14, 2021. 

Monitors display Coinbase and Bitcoin signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Wednesday, April 14, 2021. 

Photographer: Michael Nagle/Bloomberg

Hi, it’s Ed Harrison and I write about markets and policy for Bloomberg’s Markets Live. This is The Everything Risk, where each week I’ll unpack the web of risks for consumers and investors in a shifting markets landscape.

Last Wednesday, when I first started thinking about writing about cyrptocurrencies, Bitcoin was trading near $40,000. As of late Monday, it was at its lowest level since July 2021, trading below $30,000 before slightly bouncing back along with equities. Bitcoin is now more correlated with the Nasdaq than at any time since 2010, closely mirroring tech stocks as they keep crashing. Right now, crypto simply can’t be considered the kind of portfolio-diversifying asset class that lowers risk and increases returns as some advocates describe it.