In recent weeks, moreover, it has shown that its price is closer to the performance of the Nasdaq technology index than to being considered a refuge asset such as gold. What happens in this situation is that mega-cap companies tend to be affected at times of high rates. But let’s see what the experts say.
“It’s not the first time we hit this level (BTC hit $30,000), and the risk-reward ratio for buying bitcoin here was very good in the last year or so, but we are looking at a different macro backgroundsaid Matt Dibb, COO of Stack Funds, a cryptocurrency platform based in Singapore.
“The era of easy money is over. A big adjustment in investor appetite is taking place right now,” said Chris Kline, director of operations and co-founder of Bitcoin IRA in Los Angeles and expanded: “The question is whether people will see thes cryptocurrencies as a diversification tool in bad economies Or is it just something to have when times are good?“.
For his part, Benjamin Dean, director of digital assets at WisdomTree in London, said that “the interesting thing is that Bitcoin did not fall as much as the Nasdaq and other asset classes, but the correlation narrowed between them. It’s certainly a higher correlation than we’ve seen in the past.”
According to the analysis carried out by David Lawant, Director of Research at Bitwise Asset Management, Anthony Pompliano, “for some assets, such as commodities, rising inflation expectations in this new environment were a boon, while for others, such as High growth assets are a curse“.
“Bitcoin’s investment case lies somewhere between these two extremes,” he maintained, arguing: “On the one hand, it is increasingly recognized by many as a commodity whose intrinsic properties can provide protection against monetary mismanagement. On the other hand, most put it in the ‘potentially disruptive but not yet proven technology’ category, with some still questioning its entire reason for being in the first place.”
Thus, he considered that “The data shows that the first group, bitcoin as an inflation hedge, is making significant gains against the second.”
Source: Ambito
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