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Bitcoin Is The Least Reliable Hedge During Periods Of Acute Market Stress, Says JPMorgan Strategists
Summary: Bitcoin continues to fall today, plummeting by more than $10,000 compared to the all-time high of over $41,000. John Normand and Federico Manicardi, JPMorgan Chase & Co.'s cross-asset strategists released a report stating that Bitcoin is the most unreliable hedging tool during periods of acute market stress, as reported by BNN Bloomberg. The two strategists also ...
Bitcoin continues to fall today, plummeting by more than $10,000 compared to the all-time high of over $41,000.
John Normand and Federico Manicardi, JPMorgan Chase & Co.'s cross-asset strategists released a report stating that Bitcoin is the most unreliable hedging tool during periods of acute market stress, as reported by BNN Bloomberg.
The two strategists also thought that Bitcoin will not work like traditional defensive assets in the future. The report wrote: "The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage."
Cyclical assets usually refer to stocks that follow the overall economic trend, and their performance usually depends on the business cycle, such as restaurants, hotels, travel services, etc.
By Mary Liu
Tags: Bitcoin,Cyclical Asset,JPMorgan
Link: Bitcoin Is The Least Reliable Hedge During Periods Of Acute Market Stress, Says JPMorgan Strategists [Copy]
