Cryptocurrencies are used to diversify asset? Goldman Sachs answers

Goldman Sachs said the movement of cryptocurrencies is linked to several economic factors that do not make it a hedging currency or a tool to diversify assets. asset investment, as is currently thought.

A report, released by the investment bank, indicated that cryptocurrencies rise as the inflation rate rises and fall as interest rates and the dollar rise.

The report concluded that this correlation nullifies the prevailing idea that increased adoption of cryptocurrencies can lead to an increase in their prices, as as demand for these currencies increases, their movement will follow the path of others. assetand this does not make it a hedging instrument against the fluctuations of others asset in gender.

And the recent rise in the dollar, in the wake of the Federal Reserve’s move to raise interest rates, has led to a drop in the market value of cryptocurrencies to about $ 1.76 trillion, from more than $ 3 trillion at its peak. from these currencies in November.

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