Monday, December 4, 2023
cryptonews100
No Result
View All Result
CryptoNews100
No Result
View All Result
Home The FED

Bitcoin Trades More Like Risk Asset Than Inflation Hedge, Says Bank Of America

cryptonews100_tggfrn by cryptonews100_tggfrn
February 10, 2022
in The FED
0
Bitcoin Trades More Like Risk Asset Than Inflation Hedge, Says Bank Of America
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter
Sign up an get up to $1000 USDT!


Whereas Bitcoiners typically advertize the cryptocurrency as an anti-inflationary “digital gold,” Bank of America says it trades like nothing of the kind.

A current firm report signifies that the crypto asset strikes way more equally to threat property resembling equities, and reached all-time excessive correlations with the S&P 500 by the top of January.

Tight correlation to threat property

Based on the analysis observe—titled “World Cryptocurrencies and Digital Property”—Bitcoin has been buying and selling as a threat asset since July of final yr. This was about the identical time that BTC’s value confirmed indicators of significant restoration following a 50% value crash in Could 2021.

Risk property are typified by excessive volatility. Equities, actual property and currencies all fall into this class.

“Correlations on Jan 31 between bitcoin and the S&P 500 (SPX) and between bitcoin and the Nasdaq 100 (QQQ) reached all-time highs and the 99.73 percentile respectively,” reads the report. In the meantime, the asset has maintained near-zero correlation with gold throughout that point. Bitcoin is commonly in contrast with gold as an inflation hedge asset (although gold itself would not at all times act as such).

In contrast to another cryptocurrencies resembling Ethereum, Bitcoin has a hard and fast provide issuance schedule. The cryptocurrency can be mined ever extra slowly throughout time till it reaches a cap of 21 million cash. This has spurred some investors to make use of it as a hedge towards rampant foreign money devaluation, oftentimes in desire over gold.

Bitcoin-to-gold correlation was stronger early within the pandemic, following guarantees of intensive stimulus from world governments in March 2020. Nonetheless, BofA now believes that Bitcoin will neither be adopted as an inflation hedge in developed nations nor lose its standing as a threat asset till its value volatility goes down. 

Bitcoin, inflation, and the Fed

Whereas Bitcoin’s correlation to threat property is robust, it has a small propensity to react to Federal Reserve coverage and inflation statistics, although in unpredictable methods. In November, Bitcoin’s value rose to an all-time excessive round $69,000 shortly after October’s inflation figures have been revealed at 6.2%—a 30-year excessive on the time. Nonetheless, Bitcoin and shares fell later that month as soon as the Fed chairman deemed inflation as not a “transitory” phenomenon. 

Nonetheless, the report did acknowledge that Bitcoin might perform as a dependable inflation hedge in underdeveloped nations with extra inflationary environments. That is on show in Turkey, the place Bitcoin was buying and selling at all-time highs denominated in Turkish lira this December, regardless of buying and selling decrease towards the greenback.

https://decrypt.co/92590/bitcoin-trades-risk-asset-inflation-hedge-bank-america

Subscribe to Decrypt Newsletters!

Get the highest tales curated every day, weekly roundups & deep dives straight to your inbox.



Source link

Related articles

Crypto startup Ava Labs is said to raise $350 million at $5 billion valuation

Crypto startup Ava Labs is said to raise $350 million at $5 billion valuation

April 14, 2022
Bitcoin: Eight Months Later, Right Back Where We Started (Cryptocurrency:BTC-USD)

Bitcoin: Eight Months Later, Right Back Where We Started (Cryptocurrency:BTC-USD)

April 14, 2022
Share76Tweet47
Drive and walk to earn crypto!

Related Posts

Crypto startup Ava Labs is said to raise $350 million at $5 billion valuation

Crypto startup Ava Labs is said to raise $350 million at $5 billion valuation

by cryptonews100_tggfrn
April 14, 2022
0

Ava Labs Inc., the lead developer of the Avalanche blockchain, is within the technique of elevating a brand new spherical...

Bitcoin: Eight Months Later, Right Back Where We Started (Cryptocurrency:BTC-USD)

Bitcoin: Eight Months Later, Right Back Where We Started (Cryptocurrency:BTC-USD)

by cryptonews100_tggfrn
April 14, 2022
0

ersinkisacik/iStock through Getty Pictures Essential Thesis / Background The aim of this text is to debate the favored various possibility...

Top Bitcoin Treasuries – List of Companies Holding Bitcoin in 2022

Top Bitcoin Treasuries – List of Companies Holding Bitcoin in 2022

by cryptonews100_tggfrn
April 13, 2022
0

Maybe one of the very best indicators of the mainstreaming of crypto is the looks of bitcoin on the steadiness...

Gold and silver trade higher ahead on the European open

Gold and silver trade higher ahead on the European open

by cryptonews100_tggfrn
April 13, 2022
0

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our...

Bitcoin and Today’s Wicked Inflation Share a Common Ancestor

Bitcoin and Today’s Wicked Inflation Share a Common Ancestor

by cryptonews100_tggfrn
April 13, 2022
0

In 2010, Hoenig, nearing retirement on the time, was the only real voting member of the Federal Open Market Committee...

Load More

Crypto Fear & Greed Index

Latest Crypto Fear & Greed Index

Recent News

Bitcoin price surges above $42,000 to 20-month high

December 4, 2023
Brazil’s largest bank Itau Unibanco launches Bitcoin trading — Report

Brazil’s largest bank Itau Unibanco launches Bitcoin trading — Report

December 4, 2023
Max Keiser tears into Cardano (ADA), calls it ‘Extremely Dangerous’ and ‘Centralized Garbage’ ⋆ ZyCrypto

Max Keiser tears into Cardano (ADA), calls it ‘Extremely Dangerous’ and ‘Centralized Garbage’ ⋆ ZyCrypto

December 4, 2023

Categories

  • Alt Coins
  • Bitcoin
  • Cardano
  • Chainlink
  • Cryptocurrency
  • Dogecoin
  • Elon Musk
  • Ethereum
  • Exchanges
  • Litecoin
  • Pokadot
  • Polygon
  • Shiba Inu
  • Solana
  • The FED
  • Uncategorized
  • VeChain
  • XRP

Download the official CryptoNews100 Android App! Click the button below:

Tags

ADA (413) Analyst (288) Binance (363) Bitcoin (2023) blockchain (344) BTC (473) Buy (251) Cardano (737) ChainLink (570) coin (266) crypto (2156) Cryptocurrency (894) DOGE (404) Dogecoin (678) DOT (275) Elon (376) ETF (233) ETH (357) Ethereum (1100) Inu (681) investors (253) Link (338) LUNA (248) market (613) MATIC (274) million (263) Musk (272) News (310) Polkadot (443) POLYGON (522) prediction (327) price (1733) rally (249) Ripple (340) SEC (403) SHIB (354) Shiba (751) SOL (277) Solana (545) Terra (297) today (240) token (250) top (465) VeChain (271) XRP (800)

© 2023 Crypto News100 All Rights Reserved.
By visiting this website, you understand that the content provided within is for educational and entertainment purposes only. Nothing on this site may be constituted as financial advice and this site is not directing you to make any investments in cryptocurrency or in anything else. Thank you for visiting and please proceed responsibly.
As an Amazon Associate I earn from qualifying purchases.

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Alt Coins
    • Cardano
    • Dogecoin
    • Litecoin
    • Pokadot
    • Polygon
    • Shiba Inu
    • Solana
    • XRP
    • VeChain
  • Crypto Related DEALS

© 2023 Crypto News100 All Rights Reserved.
By visiting this website, you understand that the content provided within is for educational and entertainment purposes only. Nothing on this site may be constituted as financial advice and this site is not directing you to make any investments in cryptocurrency or in anything else. Thank you for visiting and please proceed responsibly.
As an Amazon Associate I earn from qualifying purchases.