Why Bitcoin Is Moving Less In Tandem With Tech Stocks

The bitcoin price has fallen more than 20% over the past month, while the S&P 500 is up 3%. But that doesn't mean Bitcoin is a more reliable indicator of whether stocks are going up or down next year.

Instead, it's just a sign that investors are trying to figure out what to do with their money. And they use different tools: some are getting into bitcoin and some are buying tech stocks. But most people do nothing.

Bitcoin's price crash may have given the impression that it's a bad choice for an investment vehicle, but it also shows that investors are worried about volatility and don't know where to invest. Where does their money go? If a lot of people are afraid of volatility and don't know what else to do, then why not take the money of those worried about volatility and invest it in something safe? That's exactly what a lot of people have done: they take money from people who want to invest in tech stocks - which are usually fairly safe investments over time - and instead invest in bitcoin (which is always fluctuations).