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**Bitcoins Status as a Safe Haven? Experts Urge Caution**
Disregard the term “virtual gold.” Despite assertions from prominent figures such as Donald Trump and Michael Saylor regarding Bitcoin’s role as a secure store of wealth, recent market trends suggest otherwise. Since Trump’s inauguration, Bitcoin has experienced a downturn, declining by approximately 19% from its peak value.
**Resemblance to Tech Stocks?**
Cryptocurrency analysts at Standard Chartered are casting doubt on the notion of Bitcoin as a safe haven. Their research indicates that Bitcoin behaves more like a tech stock than a secure refuge during turbulent times. Geoff Kendrick, the head of digital assets research at Standard Chartered, emphasizes that Bitcoin’s price fluctuations are consistently more correlated with the Nasdaq than with gold.
**Trump’s Volatile Tenure**
The piece underscores how Trump’s policies, including his fluctuating tariff threats, triggered instability in both stock and cryptocurrency markets. While the Nasdaq suffered losses and crypto experienced significant declines, gold surged to unprecedented levels. This implies that crypto is not yet fulfilling its potential as a digital counterpart to gold.
**A Form of Protection, Distinct from Gold**
Kendrick posits that Bitcoin could eventually serve as a safeguard against vulnerabilities in conventional finance. He cites the Silicon Valley Bank’s failure as an instance where Bitcoin might provide some degree of protection. However, he underscores that this type of hedging differs from the motivations behind gold purchases, which typically involve concerns about geopolitical risks and enduring inflation.
**Comparison to the “Magnificent Seven”**
Kendrick also draws an intriguing parallel between Bitcoin’s performance since late 2017 and the performance of the “Magnificent Seven” – the leading tech stocks such as Nvidia, Amazon, and Apple. This further strengthens the argument that Bitcoin is currently behaving more like a tech investment than a safe-haven asset.
He mentioned that if Bitcoin could supplant Tesla as one of the “Magnificent Seven,” this theoretical collection would have surpassed the actual “Magnificent Seven” in five of the previous seven years.
## Practicing What You Preach
This isn’t the debut time Bitcoin has been censured for its unstable cost vacillations, acting more like a high-hazard resource. Toncoin (TON) Value Forecast for March 26th
Nate Geraci, leader of the ETF Store, commented on X on Walk ninth: “In the event that Bitcoin is genuinely ‘advanced gold,’ it ought to act like gold. Something else, it fair reinforces the thought that it’s basically a high-beta resource.”
Showcase onlookers say this is a “crucial turning point” for Bitcoin to live up to its guarantees.
Amid the COVID-incited crash in Walk 2020, Bitcoin dove over 50% in fair two days.
A few still accept Bitcoin has time to develop into a secure resource.
Geraci and others contend that Bitcoin acts more like a tech stock.
Bloomberg Knowledge investigator Eric Balchunas told The Piece in May 2024: “In my see, Bitcoin is like gold, but it’s still fair a youngster.”
Andrew Flanagan is simply a showcase journalist for DL News. Got a tip? Contact him at [email protected].
