Bitcoin (BTC 2.12%) was on fire early in the day on Wednesday, only to crash as the market dropped. Investors were reminded that Bitcoin doesn’t run the world, the bond market does, and that was apparent today.
The big news was a weak 20-year Treasury auction from the U.S. Treasury that resulted in a big spike in bond yields. And higher yields typically mean investors are fleeing from high-risk assets to safer assets. Crypto advocates may think Bitcoin is a “safe” asset, but history tells us that Bitcoin trades correlated with growth stocks and isn’t a safe haven if there’s a recession or the market drops.
Bitcoin’s jump to $109,722 happened just before 1 p.m. ET, just before the 20-year auction took place. The value dropped to $106,307 within minutes and is now down to $107,191 as I’m writing. Ethereum (ETH 0.74%) took a similar path, falling 5% to $2,480 in a few minutes and Dogecoin (DOGE 2.60%)…
