March was absent of any clear demonstration of upward or downward trend as Bitcoin swung between a wide range of printing a new all-time-high on March 13th at $61.5k before swiftly falling back to $51k and then back again (finishing at roughly the same price level before the 30% sell off in February). Other cryptocurrencies traded in a similar manner finishing the month in positive territory but largely settling in below the February highs.
Every passing day serves as a new data point in understanding how cryptocurrency fits into the broader investment landscape. Historically, Bitcoin and the broader cryptocurrency markets are highly uncorrelated and go off to the beat of their own drum. As institutional capital continues to flow into the asset class it will be interesting to see how Bitcoin, among other speculative investments, perform in an environment where the dollar strengthens and US rates rise. Such an environment would be quite unexpected for the pundits convinced that we are entering an inflationary environment, a narrative that has helped fuel Bitcoin’s rise.