Bank of America: Investors see Bitcoin as a «safe haven asset»

The stabilization of prices implemented by the government has made it possible to maintain the dynamism of the economy.

Bank of America (BofA), the second largest bank holding company in the United States by assets, indicated at the beginning of last week that bitcoin has begun to be considered by investors as a «safe haven» asset. in the face of uncertainty in the world economy.

The financial institution’s statement is based on the positive correlation of the first cryptocurrency with other items, such as gold or the S&P 500 index (considered the most representative index of the real market situation). This means that the values of bitcoin and other stock indices have risen together in a fairly similar way.

Alkesh Shah and Andrew Moss, BofA digital asset analysts, explained in a note that the correlation of bitcoin with gold has remained at 0.5 for a period of 40 days.

Similarly, when compared to Wall Street stock indices, the strategists see correlations of 0.6 with the S&P 500 and 0.7 with the Nasdaq 100 (an index that includes the 100 most important companies in the technology sector).

Bank representatives also stated that while correlations with Wall Street indices are higher than the crypto assets’ with gold, they have flattened out in recent months.

On the other hand, Shah and Moss indicated that investors may view crypto as «a relatively safe haven as macro uncertainty continues.» With these statements, the BofA aims to see bitcoin as a way to face the global crisis that has led a large part of the country to endure inflation not seen in more than two decades, even though the so-called «crypto winter» has hit the markets hard. digital assets.