Bitcoin’s correction reflects investors’ inflation concerns and highlights the potential impact of future US fiscal policies.
Bitcoin (BTC) traded down by 4.1% on Nov. 14 following US inflation data that marginally exceeded market expectations. This decline mirrored the S&P 500 index futures, which fell from 6,023 to 5,980 over four hours.
As a result, traders are now questioning the extent of this correlation and when Bitcoin’s inflation-hedging attributes might offer some protection in an environment of persistent inflation.
S&P 500 index futures (left) vs. Bitcoin/USD (right). Source: TradingView
