One of the most important banks within the U.S., Bank of America Corp BAC, has lately acknowledged that Bitcoin BTC/USD can not function an inflation hedge.
In its latest analysis paper, the financial institution talked about that Bitcoin retains buying and selling in tandem with the U.S. shares regardless of being promoted as a haven asset.
In the report, Bank of America analysts Alkesh Shah and Andrew Moss stated that cryptocurrencies usually strikes with the inventory market, and Bitcoin has traded as a threat asset since July 2021.
Also Read: This Crypto Analyst Thinks Bitcoin Will Retrace By 50%: Here’s Why
In February, Shah stated that Bitcoin could be much less utilized as an inflation hedge in developed nations, besides in nations with “inflationary environments,” the place some traders could view the apex crypto as an inflation hedge.
On Wednesday, the Federal Reserve determined to hike the benchmark rate of interest by 50 foundation factors for the primary time in 22 years.
Bitcoin dropped beneath $36,000 on Friday, following a sell-off in U.S. equities. It has been down over 25% because the begin of the 12 months.
Gold, alternatively, being thought of the most secure asset by some traders, is up 2.86% year-to-date.
At the time of writing, Bitcoin was buying and selling at $35,810, down virtually 7% within the final seven days.
