Over the past year, bitcoin hasn’t really acted as an inflation hedge, according to a report by Bank of America.2 In recent months, bitcoin returns have become more correlated with those of broad stock market indexes. This means that when markets tumble, the price of bitcoin tends to fall too. For example, after the Fed indicated that it would raise interest rates in early May, bitcoin plummeted in value alongside stocks. Bitcoin has been compared to gold, which is generally seen as an inflation hedge. However, the correlation between bitcoin and gold has been close to zero since June, meaning bitcoin’s price hasn’t moved together with the gold price.3 BNN In the few years that it’s been around, buying and trading bitcoin has become much easier. This also holds true for selling bitcoin, which you can now do in an instant for market price. So whether you’re looking to take out your cash right now or just looking toward the future, you now know how to sell bitcoin and withdraw that money.
Bitcoin’s current rally has been fueled by the U.S. trading debut of a Bitcoin-linked ETF as well as Elon Musk’s weekend Twitter poll, said Ben Caselin, head of research and strategy at crypto exchange AAX. “With Shiba and other memecoins having surged recently, and Facebook’s rebranding to Meta, interest in altcoins continues to rise.” A trade order is an agreement to buy or sell a specific asset like Bitcoin at a specific price or price range. It's very unlikely the price of bitcoin — the largest and most popular cryptocurrency — will go to $0 per coin, Hume says. That's because use cases have been established, including for the aforementioned collateral. Bitcoin has also, for better or worse, become a gateway cryptocurrency for a lot of traditional finance, she adds. For example, El Salvador became the first country to adopt bitcoin as national currency in 2021, and Fidelity Investments recently announced the firm is allowing bitcoin in 401(k)s.