Deep Dive: Why bitcoin is not an 'inflation hedge'

Correlates with risk assets

clock • 3 min read

Alice Liu, senior associate in cryptocurrency investments research at WisdomTree, dives into alternatives

2022 is a challenging year, even for crypto. The crypto market started the year with price turbulence amid the US Federal Reserve raising interest rates, high inflation, and the equity market backdrop. The total crypto market cap briefly reached an all-time-high at $3trn in early November 2021 and has since dropped to $1.9trn, with bitcoin trading at $42,248 (-11.6%YTD) and ethereum at $2,889 (-23.6%YTD). This gives us the opportunity to explore the macroeconomic drivers investors should consider when approaching this asset class, in particular, under high inflation. 'Grave and mounting ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Alternatives

Sarah Miller (pictured), senior vice president Redington's manager research team

Redington's Sarah Miller: How retail investors can approach real assets implementation

Liquid vs illiquid markets

Sarah Miller
clock 23 November 2023 • 4 min read
Blackstone Diversified Multi-Strategy sought to provide investors with a diversified blend of alternative strategies and hedge fund managers in a single daily liquid UCITS fund.

Blackstone to close multi-strategy fund as assets tumble 90%

Diversified Multi-Strategy fund

Valeria Martinez
clock 21 November 2023 • 1 min read
The fund is the latest addition to Pantheon's $7bn global private wealth platform, which offers a range of evergreen fund solutions, including the $2.4bn AMG Pantheon fund: Credit: iStock

Pantheon expands wealth offering with launch of open-ended private equity fund

Subscriptions starting at $25,000

Valeria Martinez
clock 13 November 2023 • 1 min read
Trustpilot