One of the leading banks in the USA Bank of America The leading cryptocurrency in a research note penned by its analysts of bitcoin It is stated that it is still traded as a risk asset.
In the study conducted by analysts including Alkesh Shah, bitcoin analyzes were made.
Bitcoin Still Risky!
Stating that Bitcoin’s limited supply of 21 million can make BTC an effective store of value to protect against high inflation, bank analysts, on the contrary, stated that Bitcoin has been increasingly traded as a risk asset since July.
Bank analysts led by Alkesh Shah said in a report published on Jan. 31 that correlations between Bitcoin and the S&P 500 stock index and Bitcoin and the Nasdaq 100 index had reached all-time highs (99.73 percent).
The bank added that unlike the stock index, the correlation between gold and Bitcoin has been near zero since June.
In Which Countries Is Bitcoin Preferred?
Analysts also said that the volatility in Bitcoin has caused it to attract more attention from investors in inflationary countries as opposed to investors in developed countries.
Bank of America analysts recently stated that they predict that cryptocurrencies will be traded as risky assets until the volatility of deflationary assets such as Bitcoin subsides.
*Not investment advice.