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Working Paper
Crypto Is Coming of Age: The Case of Bitcoin’s Rising Beta
This paper shows that Bitcoin has transitioned from a largely idiosyncratic crypto asset into a risk-on asset with returns resembling that of the broad U.S. stock market. We estimate time-varying Bitcoin betas with respect to a tech-heavy stock index (NASDAQ), a broader economy equity index (Dow Jones), and the 10-year Treasury bond returns. Across all beta specifications, multi-factor regressions, and structural break tests, we find that Bitcoin’s equity exposure rises substantially over time, turning statistically larger than zero around 2020. In contrast, the betas for the Treasury bond ...