A recent study finds that cryptocurrencies fail to effectively hedge against economic uncertainty, with their pricing largely disconnected from economic fundamentals. While crypto returns show some correlation with stock market and oil price volatility, the transmission of uncertainty to crypto markets is generally weak, intensifying only during turbulent periods. The findings have important implications for policymakers and investors.

https://www.sciencedirect.com/science/article/abs/pii/S105752192400262X