Analyst Jim Bianco stated in a recent Twitter post that he had a “narrative” problem after Bitcoin failed as an inflation hedge. The analyst, who always said that BTC was 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.
This high correlation continues as cryptocurrencies continue to trade in line with stocks. 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 ultra-loose monetary policy of the Fed 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.
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.
At the time of writing, Bitcoin price was recorded as $20,808 according to CoinGecko data, while the last 24-hour trading volume of the leading crypto Bitcoin was $24.358,716,836. Bitcoin (BTC) price has suffered a negative impact of -3.7% in the last 24 hours. There is a supply of 19 Million BTC coins in circulation, with a total supply of 21 Million BTC coins. Binance is currently the most active market for BTC trading.