Bank Of America: Bitcoin is Not a Means of Saving From Inflation

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According to analysts from the Bank of America, Bitcoin has not been an insurance against inflation for a long time.

Since July 2021, the leading cryptocurrency in its price behavior correlates well with the dynamics of the stock market. On January 31, the correlation of Bitcoin with the S&P 500 index updated an all-time record. The new all-time high was close and in correlation with the Nasdaq 100.

Experts have stressed that this relationship “has become apparent.” They noted a simultaneous fall in stocks and Bitcoin the day after the Fed decided to raise the key rate by 0.5%. Analysts expect the high correlation to continue in the future.

The price relationship between Bitcoin and gold has, on the contrary, been gradually weakening since 2021 and has become negative in the last two months. In other words, the movement of the two assets did not go in tandem, the experts concluded.

In May, billionaire Ray Dalio said Bitcoin is not a full-fledged replacement for gold as insurance against inflation.