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Morningstar says crypto displays ‘zero sensitivity’ to traditional risk factors

Digital asset volatility is in a 'class all [of] its own,' according to the fund data provider

The likes of bitcoin are unpredicatable, with speculation rather than technology helping drive prices, Morningstar says
The likes of bitcoin are unpredicatable, with speculation rather than technology helping drive prices, Morningstar says Photo: Edward Smith/Getty Images

Crypto has shown no signs of behaving like a traditional asset during its short trading history, according to a report by Morningstar.

The 5 April report found that “thus far, cryptocurrencies demonstrate virtually zero sensitivity to established risk factors like size, valuation, or term and credit premiums”.

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