Bitcoin and the S&P 500 are both expected to end the third quarter with losses, as a key metric shows that owning bonds over stocks and other risk assets is currently the strongest it has been since 2009. Bitcoin has seen a 14% decline for the quarter, trading at $26,100, while the S&P 500 has fallen nearly 3% to $4,320.05.
The equity risk premium, which measures the gap between the S&P 500's earnings yield and the yield on the US 10-year Treasury note, has dropped to its lowest level since 2009, indicating that the appeal of investing in stocks and other risk assets has decreased. This has led to less incentive to invest in bitcoin, which is considered a non-yield bearing, risk-on asset.
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