empty
 
 
23.11.2021 11:10 PM
Bitcoin: BTC is not performing well enough yet, and is not a protective haven that protects against inflation

This image is no longer relevant

Bitcoin is having a tough week right now, the cryptocurrency is in a state of correction and has already lost more than $10,000 from its historical peak.

The current correlation coefficient of digital gold and the S&P 500 is 0.3, which is a record for the year. Bitcoin also continues to grow if the stock shows an upward movement.

The coefficient (1) means that stocks and bitcoin are moving synchronously, and (-1) means that assets are moving in different directions.

Many crypto enthusiasts believe that digital assets and bitcoin are very closely related and are a special protective class that can act against inflation.

Many high-tech companies suffered heavy losses at the beginning of the week. On Monday, companies with a very high price in the field of high technology suffered losses, including companies whose growth expectations were pushed into the future.

Bitcoin is losing almost 7% during Monday's session, and in two weeks digital gold has fallen by almost 20%. Today, prices have stabilized, while the digital token has gained about 2%, to 57,455 US dollars.

Many Wall Street analysts have supported the use of bitcoin as a hedge asset against this trend.

Bloomberg Economics economists have stated in their latest calculations that about half of bitcoin's recent earnings can be attributed to investor fears, fears of impending large-scale inflation, and the other half to the abundance of the market and dynamic trading.

However, many analysts believe that bitcoin has not existed long enough, and has not proven itself to be a dominant asset that protects against inflation.

Duke University professor Cam Harvey is sure that bitcoin is like a speculative and highly volatile asset that is subject to periodic failures.

Many bitcoin movements depend on various short-term factors. It is very difficult to predict what could be the catalyst for bitcoin's growth, inflation or technological progress.

Vitaly Kolesnikov,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback