About 60% of Bitcoin returns since October 2020 can be explained by exuberance in the wider market and momentum trading, according to Bloomberg. The returns are based on Bloomberg’s Economics’ structural empirical model, which exploits the co-movement of prices for Bitcoin and other assets.
- Bitcoin’s role as a hedge against inflation and uncertainty has earned it the tagline “digital gold.”
- BE’s model shows that Bitcoin’s role as a hedge against inflation and uncertainty only explained a smaller 35% share of the post-October surge.
Bitcoin is currently declining. BTCUSD is down 8.44%.