2 years ago
While bitcoin’s proviso headdress of 21 cardinal could marque it cleanable to clasp arsenic an ostentation hedge oregon store of value, the cryptocurrency has traded progressively arsenic a hazard plus since July, Bank of America said successful a probe note.
Correlations connected Jan. 31 betwixt bitcoin and the S&P 500 banal index, and betwixt bitcoin and the Nasdaq 100 scale reached all-time highs and the 99.73 percentile, respectively, analysts led by Alkesh Shah wrote Tuesday.
The correlation betwixt bitcoin and gold, a metallic that’s often treated arsenic an ostentation hedge oregon store of value, has stayed astatine adjacent to zero since June of past year, the slope noted.
The integer asset’s volatility has fallen from the highs seen successful 2013, but it remains elevated comparative to the S&P 500, Nasdaq 100 and gold, the study said.
The volatile terms means that bitcoin is improbable to beryllium adopted arsenic an ostentation hedge for investors successful developed countries but “individuals surviving successful inflationary environments whitethorn presumption bitcoin arsenic an ostentation hedge,” the study added.
Bank of America expects cryptocurrencies to commercialized arsenic hazard assets until the volatility for deflationary tokens similar bitcoin falls.
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