The Crypto Hedge?

So far this year, we have experienced the longest “downturn” in terms of time since our last record high during The Great Recession.

Since then, we had the invention of Bitcoin and other cryptocurrencies, and it's interesting to note how these new asset classes are performing.

The arguments before this year were:

1. Crypto will be independent of the stock market and act as a great hedge.
   
   Or,
   
   
2. It is nothing more than the recipient of excess speculation.

Today's Chart of the Day shows the value of a $100 investment at the beginning of the year. Orange for gold at $91, blue for the S&P 500 at $76, and purple for Bitcoin at $41.

The texts books have not been written yet, since we haven’t finished the cycle, but so far the “crypto is a great hedge against the stock market” argument is struggling.