Even bitcoin can’t escape Omicron. The digital currency plunged over the weekend, tumbling by more than a fifth to hit $41,967. Bitcoin reached an all-time high of $68,521 last month but has since lost momentum. Despite the latest pullback the digital currency is still up 75% since the start of the year.
The “gut-wrenching fall” will have left “even some veteran crypto bulls feeling a touch queasy”, says Mark DeCambre on MarketWatch. Crypto’s fans argue that digital assets aren’t correlated with the prices of other assets such as stocks and bonds, providing invaluable portfolio diversification. The trouble is that “crypto has been trading more in step” with equity and bond markets recently, with the weekend plunge following a sell-off on the S&P 500.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Bitcoin’s growing popularity with Wall Street is part of the problem: the stockmarket’s recent falls may have forced hedge funds to sell their bitcoin holdings to raise cash. As a “growing army of institutional investors” move into crypto, bitcoin’s correlation with stocks will only increase.
-
Football fans issued warning over ticket scams ahead of 2026 World CupSantander customers lost more to football scams in the first six months of 2025 compared to the same period in 2024, when total losses surged due to the Euros
-
Nationwide fined £44 million over “inadequate” anti-money laundering systemsFailings in Nationwide’s financial crime processes between October 2016 to July 2021 meant one criminal was able to deposit £26 million from fraudulent Covid furlough payments in just eight days.
-
Who is Christopher Harborne, crypto billionaire and Reform UK’s new mega-donor?Christopher Harborne came into the spotlight when it emerged he had given £9 million to Nigel Farage's Reform UK. How did he make his millions?
-
The best Christmas gifts for your loved onesWe round up the best Christmas gifts with a touch of luxury to delight, surprise and amaze family and friends this festive season
-
The top stocks of 2025 - did you pick a winner?As a chaotic year in the stock market draws to a close, we review which stocks were investors’ top picks for 2025
-
Leading European companies offer long-term growth prospectsOpinion Alexander Darwall, lead portfolio manager, European Opportunities Trust, picks three European companies where he'd put his money
-
How to harness the power of dividendsDividends went out of style in the pandemic. It’s great to see them back, says Rupert Hargreaves
-
Why Trustpilot is a stock to watch for exposure to the e-commerce marketTrustpilot has built a defensible position in one of the most critical areas of the internet: the infrastructure of trust, says Jamie Ward
-
Tetragon Financial: An exotic investment trust producing stellar returnsTetragon Financial has performed very well, but it won't appeal to most investors – there are clear reasons for the huge discount, says Rupert Hargreaves
-
How to capitalise on the pessimism around Britain's stock marketOpinion There was little in the Budget to prop up Britain's stock market, but opportunities are hiding in plain sight. Investors should take advantage while they can
