London based investment research firm, Capital Economics, released a new report in which it claims Bitcoin has no fundamental worth. Capital Economics explained that the cryptocurrency has been quite closely correlated to the S&P 500 since the price started to fall from its record high at the end of 2017. The firm stated: "Bitcoin's correlation with equity prices has strengthened recently, but we think that this will be just temporary. We still think that bitcoin is essentially worthless, meaning that it is likely to fare much worse than other assets in the coming months. We expect equity markets to fall as investors cotton on to the fact that rising U.S. interest rates will slow economic growth. But the main factor driving down the price of bitcoin is likely to be a realization that it is simply not a credible long-run alternative to conventional currencies".
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