Bitcoin prices were hammered and cryptocurrencies have mostly taken a massive dive this year.
Specifically, Bitcoin saw a top-to-bottom decline of nearly 75% and is down 47% so far in 2022.
The moves clearly answered the question of whether bitcoin, ethereum and others would act as a hedge against inflation.
While they initially jumped and rose in 2020 and 2021, investors have to question whether this was due to the rise in risk assets (such as high-growth stocks) or due to inflation.
Given the way bitcoin and other cryptocurrencies have traded lower so far this year, they appear to have a much stronger correlation with growth stocks than they do with inflation, which has been rocketing higher.
