Bitcoin has long been no insurance against inflation. Fortune writes that analysts at Bank Of America came to this conclusion.

Since July 2021, the first cryptocurrency in price behavior correlates well with stock market dynamics. On January 31, bitcoin’s correlation with the S&P 500 index updated the all-time record. The new all-time high was close and correlated with the Nasdaq 100.

Experts emphasized that this relationship “has become evident”. They recorded a simultaneous decline in stocks and bitcoin the day after the Fed decided to raise the key rate 0.5%. Analysts expect the high correlation to continue into the future.

On the contrary, the price relationship between Bitcoin and gold has been weakening since 2021 and has turned negative in the last two months. In other words, the experts concluded that the movements of the two entities did not go together.

Recall that in May 2022, billionaire Ray Dalio said that bitcoin is not a full-fledged substitute for gold as insurance against inflation.

Earlier, Arthur Hayes, co-founder of the BitMEX exchange, wanted Bitcoin to drop to $30,000 at the end of the second quarter due to the drop in the Nasdaq index.