One of many largest banks within the U.S., Financial institution of America Corp BAC, has just lately said that Bitcoin BTC/USD can’t 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.
Within the report, Financial institution of America analysts Alkesh Shah and Andrew Moss mentioned that cryptocurrencies typically strikes with the inventory market, and Bitcoin has traded as a danger asset since July 2021.
Additionally Learn: This Crypto Analyst Thinks Bitcoin Will Retrace By 50%: Here’s Why
In February, Shah mentioned that Bitcoin can be much less utilized as an inflation hedge in developed international locations, besides in international locations with “inflationary environments,” the place some buyers 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 under $36,000 on Friday, following a sell-off in U.S. equities. It has been down over 25% for the reason that begin of the yr.
Gold, then again, being thought-about the most secure asset by some buyers, is up 2.86% year-to-date.
On the time of writing, Bitcoin was buying and selling at $35,810, down nearly 7% within the final seven days.