Bitcoin suffers liquidation spree, fearing ominous signs for market

At the same time, open positions in bitcoin futures were falling, and funding rates on some major exchanges turned negative, meaning those holding short positions were paying a premium, all signs pointing to a liquidation frenzy among cryptocurrency investors.

Bitcoin is more of a risky asset

On the other hand, the declines in the stock market and cryptocurrency over the past week are further evidence that bitcoin remains an imperfect hedge for institutional portfolios.

Asset management firm Man Group wrote in a recent report that despite Bitcoin's near-zero correlation to major asset classes, there is an 86% chance that Bitcoin will fall whenever the stock market drops 5% or more in a month over the past decade, with an average decline of 13%. according to Maley.