Bitcoin has emerged as a key diversifier for investors as bonds and equities increase in correlation, just as the UK’s regulatory framework looks to mainstream and legitimise digital assets.
Bond yields and stock markets – traditionally inversely correlated – have both seen rises in recent months, with equities performing strongly across developed markets despite difficult macroeconomic conditions and with increasing government bond yields, which show little sign of slowing down. UK 30-Year gilt yields topped 6% for the first time since 1998 on Thursday (1 October), while US 10-Year Treasury notes also hit their highest point since 2002. Meanwhile, the FTSE 100 – which is relatively underweight on tech and AI compared to peers – and the S&P 500 have risen around 5% and 12...
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