Sorry, bitcoin investors, there's no light at the end of the tunnel, according to London based Capital Economics.
In the coming months we can expect much weaker bitcoin quotes compared to other asset classes, analysts from Capital Economics believe.
Analysts believe that one should expect the end of a stronger correlation between the bitcoin and S & P500 quotations, visible since December last year, when the most popular cryptocurrency reached the highest value.
- The correlation of bitcoin with share prices has strengthened recently, but we think it is only a temporary phenomenon. We still think bitcoin is essentially worthless, which means it will probably be traded much worse than other assets in the coming months, the Capital Economics report said.
Analysts believe that the correlation between bitcoin and the stock market was largely accidental, because it was caused by a series of discounts related to specific events, such as banned custodians from trading by some banks, increased interest from regulators, or the ban on virtual money advertising by the largest internet platforms.
The main factor behind the drop in the price of bitcoin will probably be that it becomes more and more clear that it is not a credible long-term alternative to conventional currencies - says Capital Economics.
