Bank Of America: Bitcoin Is Starting To Trade More Like A Safe Haven Asset Again, Not A Speculative Asset
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Loading... - Baniti Emad
- 28 Oct 2022
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Bitcoin is experiencing an uncharacteristic period of price stability, and its movements relative to other assets may indicate that investors are starting to see the No. 1 crypto as a safe haven again after it was being traded basically as a risk asset, according to Bank of America.
Since the beginning of September, Bitcoin’s price has hovered between $19,000 and $20,000 — remarkable for a digital token that was once synonymous with volatility.
Last week, new data showed that Bitcoin is now less volatile than both the S&P 500 and Nasdaq for the first time since 2020, Decrypt reported.
Bitcoin has traded as a risk asset since July 2021, Barrons reported. Its correlation with both the S&P 500 and Nasdaq 100 stock indexes reached an all-time high on Sept. 13, analysts led by Alkesh Shah at Bank of America wrote in a note last week.
Meanwhile, Bitcoin’s correlation to gold prices, which was at zero or negative from June 2021 to Sept. 5, 2022, has once again turned positive. Gold is commonly seen as an inflation hedge. Read More...
