Lead analyst Jim Bianco, in a recent Twitter post, of bitcoin He stated that he had a “narrative” problem after failing as an inflation hedge.
The analyst, who said that BTC was always described as an anti-inflation tool, argued that this was actually a false statement.
Bianco stated that for the past six months, Bitcoin has been trading in line with S&P 500 futures.
“Bitcoin Is No Different From A Leveraged Stock”
This high correlation cryptocurrency units continue to be traded in line with equities.
Bianco claimed that BTC acts as a “leveraged stock”.
“I argued that it shouldn’t be that way, but it is and continues to be that way,” the analyst added.
Despite complaining about the FED’s ultra-loose monetary policy in the past, Bianco said he expects Bitcoin to actually print more money as risk assets tend to benefit from low interest rates and multiple forms of quantitative easing.
According to the analyst, this is a big problem for BTC’s long-term purposes.
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Bitcoin recently recorded its worst quarter in over a decade. Meanwhile, the tech-heavy Nasdaq Composite, which tends to be highly correlated with cryptocurrencies, recorded its worst quarter since 2008.
During the market turmoil of 2022, Bitcoin failed to become a safe haven, refuting the assumption that the world’s largest cryptocurrency was actually a risk-free asset.
BTC, which broke its all-time high price record in November of 2021, is currently trading far from these levels.
*Not investment advice.