Bitcoin was looking good as an inflation hedge — then it plunged nearly 20%
REUTERS/Dado Ruvic
When the shocking October inflation numbers first flashed through to traders' screens, showing US prices were rising at the fastest rate in 31 years, bitcoin shot higher.
To many crypto fans, the token's gains confirmed what they'd long argued: Bitcoin is the new inflation hedge on the block, and it's «digital gold» for the 21st century that will soon be a key diversifier in portfolios around the world.
But that logic sustained some heavy fire in the last few days when bitcoin's price plunged 18%, from a record high of above $68,600 on November 10 to below $56,000 on Friday.
The inflation-hedge narrative «should come with some very big caveats,» said James Malcolm, a top currency strategist at investment bank UBS. «It's not a
Read more on markets.businessinsider.com
