Coinbase chief economist Cesare Fracass said in a blog post that while some use cryptocurrencies as a hedge in traditional markets, digital assets today have similar risk characteristics to commodities such as oil and gas, technology and pharmaceutical stocks.
He noted that the correlation between stocks and crypto-asset prices has risen significantly since the 2020 pandemic.
A May report from the Coinbase Institute found that bitcoin and ethereum have similar volatility to commodities like natural gas and oil, ranging between 4% and 5% on a daily basis.