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.
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.
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
Floki Inu scam warning is notified to users about unauthorized tokens falsely associated with its…
Kaspa and Lido are bouncing back after experiencing downtrends recently, but RCO Finance remains the…
The allegations in the SEC Binance lawsuit that BNB coin sales constitute unregistered securities were…
US Treasury crypto tax rules aim to prevent tax evasion and align crypto tax reporting…
VanEck and 21Shares are leading the race to launch a spot Solana ETF with bets…
Despite recent developments regarding Ether's classification, the SEC ConsenSys lawsuit for the MetaMask operations remains…
This website uses cookies.