Cointime

Download App
iOS & Android

Federal Reserve Bank of New York Identifies Bitcoin as a Savings Instrument Similar to Gold

A major development for Bitcoin occurred a few days ago, but it did not receive the proper coverage in the mainstream media.

The Federal Reserve Bank of New York, which is one of the 12 independent banks that make up the US Federal Reserve System (Fed), recently released a scientific study on the nature of Bitcoin and the conclusion it came to is surprising: it identifies Bitcoin as a kind of savings instrument, similar to gold.

“Monetary surprises”

This new report, number 1052, from the Federal Reserve Bank of New York entitled “The Bitcoin-Macro Disconnect” was released a few days ago and in which the federal agency tries to understand the nature of Bitcoin.

It is a serious academic paper that uses statistical analysis. In fact, because the report led to unexpected conclusions, it is published under the title “monetary surprises”.

“The key result is that, unlike other U.S. asset classes, Bitcoin is orthogonal to monetary and macroeconomic news. This decoupling is puzzling, as unexpected changes in discount rates should, in principle, affect the price of Bitcoin even when interpreting Bitcoin as a purely speculative asset.”

Simply put, the report states that based on rigorous statistical analysis, it has been found that — contrary to popular opinion — the Bitcoin price is mostly independent of both monetary and macroeconomic news. And even though Bitcoin reacts to news, it reacts significantly weaker than other assets.

Contrary to the populist view

This conclusion contradicts the populist view that Bitcoin is only a speculative asset. This unusual feature makes Bitcoin a defensive asset. Financiers typically classify assets as defensive if they behave contrary to some factor.

For example, Bitcoin’s price usually rises when dollar inflation increases, which makes BTC a defensive asset against the dollar.

Like Gold

Large players often hedge their reserve portfolios against devaluation. This means they use defensive assets to balance the value of the portfolio.

For example, if one part of the portfolio loses value, the other part becomes more expensive as a defensive asset for the first part and overall maintains the original value of the portfolio. Such a balanced portfolio composition is called “hedging”.

The “orthogonal properties” of Bitcoin, which the Fed writes about in its academic study, are ideal for hedging traditional financial assets. The Fed also recognizes Bitcoin as a savings vehicle (just like gold) for a variety of reasons.

Bitcoin as a hedge

This conclusion is fully supported by data from the US bank, BNY Mellon. Bank clients are already aware that Bitcoin can be used to hedge risks.

According to Reuters, Michael Demissie, head of advanced solutions at BNY Mellon Bank, said during the fintech and regulatory services conference, ‘Afore Consulting’, that cryptocurrencies are firmly entrenched in the financial sector, with clients eagerly using them in their portfolios.

“We see that clients are absolutely interested in digital assets,” he said.

Demissie added that more than 90 percent of this bank’s clients plan to invest in cryptocurrency assets in the near future.

Get the latest news here: Cointime channel — https://t.me/cointime_en

Comments

All Comments

Recommended for you

  • BTC Surpasses $82,000

    Market data shows that BTC has surpassed $82,000, currently priced at $82,038.65, with a 24-hour increase of 0.31%. The market is experiencing significant volatility, so please ensure proper risk management.

  • ETH Surpasses $2400

    Market data shows that ETH has surpassed $2400, currently priced at $2400.26, with a 24-hour decline of 1.33%. The market is experiencing significant volatility, so please ensure proper risk management.

  • BTC Surpasses $81,000

    Market data shows that BTC has surpassed $81,000, currently priced at $81,016.34, with a 24-hour decline of 1.53%. The market is experiencing significant volatility, so please ensure proper risk management.

  • BTC Falls Below $80,000

    Market data shows that BTC has fallen below $80,000, currently priced at $79,940.09, with a 24-hour decline of 3.44%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Philadelphia Semiconductor Index Set to Lose Over $2 Trillion in Market Value in Seven Trading Days

    The Philadelphia Semiconductor Index is poised to evaporate over $2 trillion in market value within seven trading days.

  • Philadelphia Semiconductor Index Drops 4% to Lowest Level in Nearly a Month

    The Philadelphia Semiconductor Index fell by 4.01% during the day, currently reported at 11,215.37 points. Nvidia dropped by 3.25%, Broadcom fell by 2.87%, Micron decreased by 5.79%, Intel declined by 5.81%, AMD dropped by 6.28%, Qualcomm rose by 0.66%, TSMC fell by 4.37%, and ASML decreased by 3.34%.

  • Philadelphia Semiconductor Index Falls 4% to Lowest Level in Nearly a Month

    The Philadelphia Semiconductor Index dropped 4.01% during the day, currently reported at 11,215.37 points. Nvidia fell by 3.25%, Broadcom by 2.87%, Micron by 5.79%, Intel by 5.81%, AMD by 6.28%, Qualcomm rose by 0.66%, TSMC fell by 4.37%, and ASML dropped by 3.34%.

  • Ripple Prime Launches Perpetual Contract Trading Services for Institutional Clients

    According to Bloomberg, Ripple's main brokerage division, Ripple Prime, is launching perpetual contracts for real-world assets (RWA) aimed at institutional clients, covering over 100 reference markets including stocks, indices, ETFs, and commodities. This product is offered through Trade.xyz on Hyperliquid, continuing Ripple Prime's previous initiative to provide clients with access to cryptocurrency perpetual contract trading.

  • NYC Comptroller Urges Anthropic to Pause IPO Plans

    On October 15, New York City Comptroller Mark Levine stated in an interview that he has written to Anthropic CEO Dario Amodei, urging the company to suspend its planned initial public offering (IPO). In the letter, he called for Anthropic to pause its IPO plans until it can fully and transparently address concerns related to AI safety, governance, and development that the company itself has raised. Levine wrote that the company should focus on mitigating these risks rather than advancing the IPO. Currently, New York City has an investment exposure of less than $10 million in Anthropic through the private market.

  • US September PPI Rises 6.3% Year-on-Year, Exceeding Market Expectations

    The US Producer Price Index (PPI) for September recorded a year-on-year increase of 6.3%, the highest since May 2026, surpassing market expectations of 5.3%. The month-on-month PPI for September was reported at 1.3%, significantly higher than the market forecast of 0.5%. Additionally, US retail sales for September showed a month-on-month increase of 0.8%, also exceeding market expectations.