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Bitcoin’s Inflation-Hedging Credentials Tested by Fed Resolve

  • Digital token shows its not immune to broad market moves
  • Correlation with 10-year yields indicates zero connection
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The Big Crypto Selloff and Rebound
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Bitcoin is proving that it’s not immune to uncertainty around the Federal Reserve’s ability to cool the hottest inflation in nearly 40 years despite its billing by advocates as a hedge against rising prices. 

The cryptocurrency’s recent tumble spotlighted how sensitive it is to broader market sentiments; hurting claims that it can offset the eroding impact of inflation. If Bitcoin is such a hedge, it should act more like gold which tends to track steadily amid market turbulence, according to Lindsey Bell, chief markets strategist at Ally Financial Inc.