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"Bitcoin's correlation with equity prices has strengthened recently, but we think that this will be just temporary. We still think that bitcoin is essentially worthless," Capital Economics tells CNBC. Scroll Down for More
There were different factors driving the movement of both assets, Capital Economics surmises.
"We expect equity markets to fall as investors cotton on to the fact that rising U.S. interest rates will slow economic growth. But the main factor driving down the price of bitcoin is likely to be a realization that it is simply not a credible long-run alternative to conventional currencies," the note added.
"We expect equity markets to fall as investors cotton on to the fact that rising U.S. interest rates will slow economic growth. But the main factor driving down the price of bitcoin is likely to be a realization that it is simply not a credible long-run alternative to conventional currencies," the note added.
Bitcoin rose to a record high above $19,000 toward the end of last year, but has since fallen dramatically and was trading around the $6,800 mark on Thursday.
- Aaron Goldstein, Gambling911.com
