Per Editor: Du Yu
The Bitcoin index ushered in a wave of rebound after hitting a low of 32985 points. However, it is worth noting that the Bitcoin index has been in a sideways consolidation these days, and the direction is unclear.
On the disk, on February 8, the Bitcoin index first rose at one point, once reaching 2.35%, and then fell back, once falling by 2.58%, with an amplitude of nearly 5% on the day. On February 9, the bitcoin index closed down 1.99%, february 10, and fell more than 2% intraday on February 11.
Over the past few trading days, the Bitcoin index has been sorted back and forth during the intraday, and short-term trading has fallen into a state of glue.
Such a trading situation has also made investors very "hurt". According to the data of Bitcoin Homeland Network, nearly 100,000 people have exploded in the past 24 hours, and more than 2 billion funds have been wiped out.
Bank of America said in a new report that investors should not look at Bitcoin as an inflation hedge, and that its correlation with gold is close to zero, while its correlation with the stock market has soared to an all-time high.
Bank of America analysts, led by Alkesh Shah, wrote that in March 2020, the correlation between Bitcoin and gold increased significantly as the Fed's stimulus moves and inflation concerns drove demand for Bitcoin early in the pandemic. But since then, that correlation has all but disappeared, and the correlation is now close to zero.
Conversely, Bitcoin's correlation with the S&P 500 and Nasdaq 100 has strengthened significantly since July 2021 and reached an all-time high at the end of January this year. This suggests that Bitcoin is being traded more as a risk asset than as an inflation hedge.
JPMorgan Chase Strategist Nikolaos Panigirtzoglou said: "Based on Bitcoin's volatility compared to gold, Bitcoin's 'fair value' is about 12% lower than the current price. ”
In a note published tuesday, he wrote: "Bitcoin is about four times more volatile than gold, and based on this, the level of fair value of bitcoin calculated by strategists is about $38,000." ”
In addition to Bitcoin, an altcoin containing Tesla CEO Musk's name has attracted much attention in the past two days.
The altcoin, called Baby Musk Coin (BABYMUSK), reportedly plummeted nearly 100 percent on Wednesday.
The altcoin, which was just launched at the end of January this year, raised $2 million through an "initial coin offering" (ICO), but it has also raised questions from some.
The first to warn was twitter users NOSHITCoin_io, who pointed out multiple red flags just days after the cryptocurrency was launched, including a large number of BABYMUSKs in the hands of developers and the fact that users could not sell. As a result, the user called it a "honeypot scheme." They also accused CoinMarketCap of listing data from BABYMUSK — which the project noted in a press release to "prove" its legitimacy.
Now, the project is falling apart. The project's developers appear to have erased all signs of BABYMUSK's existence, the project's website and Twitter accounts have disappeared, and the self-described "video of Baby Musk dancing on the Internet" released by the company to promote the project has disappeared.
However, the "Baby Musk Coin" page on coinMarketCap's website has not disappeared, showing that the token is experiencing a nearly 100% plunge.
Daily Economic News Synthesizes Bitcoin Homeland Network, Global Market Broadcast, and Public Information
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