Bank of America Strategists: "Crypto Assets the New Safe Harbor"

Bank of America strategists said that despite the ongoing bear market in the cryptocurrency market, investors are starting to see cryptocurrency leader Bitcoin as a safe haven.

BofA Strategists noted that the increase in correlation between BTC and gold (XAU) is one of the most important indicators of investor confidence in BTC amid the ongoing economic downturn in global markets. Strategists said, "Bitcoin's correlation with gold, often seen as an inflation hedge, has been on the rise this year, reaching an annual high in early October." BofA strategists Alkesh Shah and Andrew Moss noted in an analysis that "The trend of increasing correlation was close to zero from June 2021 and turned negative in March 2022. However, as of September 5, the correlation between these two assets started to strengthen." In addition, expert strategists noted that the increase in correlation between Bitcoin and gold (XAU) should not be considered as the only indicator that investors' confidence in BTC is increasing, Bitcoin is increasingly correlated with major stocks such as the S&P 500 and Nasdaq 100, and the correlation between Bitcoin and both the S&P 500 and Nasdaq 100 index reached an all-time high on September 13. In addition, strategists, who underlined the large amount of crypto asset outflows from exchanges recently, emphasized that the large outflows to personal wallets indicate a short-term and limited selling pressure: "When investors want to hold their assets, they transfer their assets from exchange wallets to personal wallets, indicating a potential reduction in selling pressure in the coming periods." Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!