Bitcoin Drops in Lockstep With Stocks and Bonds (Not Much of a Hedge)

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The Street

By Dan Weil Bitcoin has correlated strongly with inflation, too, as consumer prices soared 8.3% in the 12 months through April. Bitcoin advocates have stressed for some time that the world’s biggest digital currency can hedge against inflation and declines by stocks and bonds. But that hasn’t happened this year, as stocks, bonds and bitcoin have dropped in tandem. Year to date, the S&P 500 has suffered a 15% drop in total return, the Bloomberg U.S. Aggregate Bond Index posted a negative return of 10%, and bitcoin has plunged 37% to $30,029. That’s obviously not much of a hedge. The three-month…

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