According to the analysts of US bank Bank of America, Bitcoin has not been an insurance against inflation for a long time, Fortune has reported.
Since July last year, the largest cryptocurrency in terms of market capitalization correlates well with the dynamics of the stock market. On January 31, the correlation of Bitcoin with the S&P 500 index reached an all-time record which was close and in correlation with the Nasdaq 100.
The bank’s experts believe this relationship “has become apparent.” They have noted a simultaneous fall in stocks and Bitcoin the day after the Fed decided to raise the key rate by 0.5%. According to analysts, the high correlation will continue in the future.
On the contrary, the price relationship between Bitcoin and gold has been gradually weakening since last year and has become negative in the last two months.