Bank of America, one of the largest banks in the USA, emphasized in its latest research article that Bitcoin (BTC) will not function as a hedge against inflation.
Although Bitcoin is seen by the crypto community as an “inflation hedge”, the asset continues to be traded alongside US equities. In particular, the correlation between Bitcoin and the Nasdaq 100 stock market index has reached an all-time high.
Bitcoin’s recent price action has been driven by macroeconomic conditions. The Fed continued its bullish stance by deciding to raise the benchmark rate by 50 basis points on Wednesday.
The leading cryptocurrency fell to $35,268 today, the lowest level since February 24.
Bitcoin has dropped by approximately 48% after making ATH at $69,044 last year.
Asset fell 21.4% year-to-date. The value of gold, which is often compared to Bitcoin, has increased by 2.88% year-on-year.
