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Financial institution of America has debunked the argument that Bitcoin can operate as a portfolio diversifier
Financial institution of America, one of many largest banking establishments within the U.S., has demonstrated that Bitcoin can not function an inflation hedge in its most up-to-date analysis paper.
The cryptocurrency retains buying and selling in tandem with the U.S. shares regardless of being promoted as a secure haven asset by its ardent supporters. In truth, the correlation between Bitcoin and the tech-focused Nasdaq 100 inventory market index not too long ago reached one more all-time excessive.
Bitcoin’s latest worth motion has been primarily pushed by macroeconomic circumstances. As reported by U.As we speak, the U.S. Federal Reserve determined to hike the benchmark rate of interest by 50 foundation factors for the primary time in 22 years on Wednesday, reaffirming its bullish stance.
Earlier right now, the world’s largest cryptocurrency dipped to $35,268, the bottom stage since Feb. 24.
Bitcoin is down nearly 48% from its all-time excessive of $69,044, severely underperforming in 2022 after recording substantial returns final 12 months.
The highest cryptocurrency is down 21.4% for the reason that begin of this 12 months. For comparability, gold, which stays the highest safe-haven asset for buyers, is definitely up 2.88% year-to-date.
The U.S. greenback has to date been the largest winner in 2022. The DXY index, which measures the power of the dollar towards different high fiat currencies, soared to one more multi-decade excessive earlier right now.
Earlier right now, Galaxy Digital CEO Mike Novogratz opined that tech shares had been but to backside out, which means that there’s seemingly extra ache in retailer for crypto as nicely.
Whereas those that joined the Bitcoin occasion in 2021 could be underwater, the vast majority of wallets stay in revenue, Glassnode information reveals. In 2019, Financial institution of America named Bitcoin the best-performing asset of the last decade.
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