Bitcoin

Longtime Investment Analyst Identifies Bitcoin’s Biggest Issue

Jim Bianco, a well-known analyst, recently stated on Twitter that Bitcoin has a narrative issue because it failed to work as an inflation hedge.

Longtime Investment Analyst Identifies Bitcoin’s Biggest Issue

According to Bianco, during the past six months, BTC has traded in lockstep with S&P 500 futures.

As long as cryptocurrencies and stocks continue to trade in tandem, there will be a substantial correlation.

According to Bianco, BTC is actually the same as “a leveraged ES degen.”

“I’ve argued it should not be this way, by it is, and continues so,” the analyst wrote.

Bianco thinks that Bitcoin secretly hopes for more money printing even if it has previously criticized the Federal Reserve’s ultra-easy monetary policy because risk assets often profit from low interest rates and various types of quantitative easing.

This is a significant issue for Bitcoin’s long-term goals

Longtime Investment Analyst Identifies Bitcoin’s Biggest Issue

The most recent quarter for Bitcoin saw its worst performance in more than ten years. The Nasdaq Composite, which is heavily weighted toward technology and frequently correlates highly with cryptocurrencies, had its worst quarter since 2008.

The failure of BTC to provide a safe harbor during the market volatility in 2022 supports the notion that the biggest cryptocurrency is genuinely a risk-free investment.

One of the top US banks, Bank of America, stated in May that Bitcoin wasn’t a practical portfolio diversifier because of its propensity to behave similarly to stocks. Therefore, the biggest cryptocurrency cannot be used as a hedge against inflation.

Despite extremely significant inflation, BTC is down more than 69% from its record high.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

16 mins ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

3 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

5 hours ago

OpenSea New Version Will Be Launched In December

OpenSea new version is scheduled to launch in December, with an improved user experience, improved…

5 hours ago

This website uses cookies.