Rising Treasury yields (anticipation of slower Fed rate cuts) typically hurt growth-dependent risk assets, yet equities rallied. Bitcoin, sensitive to real rates, pulled back instead. Different sensitivities to the same macro signal.
Bitcoin spot ETFs recorded their strongest inflows since April, but this came *after* the price decline, not before. Institutions bought the dip, but retail may have panicked out of the bounce to $65k.
CPI data (July inflation at 3.4% annually, core at 2.5%) and Fed policy uncertainty drive both equities and crypto, but with different lag times. Stocks price in long-term growth; Bitcoin prices in immediate Fed risk.
The myth of perfect inverse correlation is dead. Crypto and equities sometimes move together, sometimes diverge. A diversified portfolio needs both, not either-or bets. Watch individual correlations, not assumptions.
Read More →