Gold continues to be a reliable safe-haven asset, while Bitcoin still behaves like high-risk tech stocks during periods of market instability. This conclusion was reached by experts surveyed by The Block.
CEO deVere Group Nigel Green noted the accumulation of 'warning signals' about the possibility of continued sell-offs in the stock market.
Crypto fell following the American stock market. Bitcoin traded below $77,000 at one point, ETH at $1,750, and SOL at $112. The daily liquidation volume approached $1 billion.
Since the announcement of tariffs by Donald Trump, the US stock market has lost $4 trillion. Tesla shares fell by 15% just yesterday. Apple, Nvidia, Google, and Meta declined by 4-5%.
The top manager highlighted the weakening of consumer sentiment, high inflation, and the rise in unemployment claims.
He reminded that the GDPNow model from the Atlanta Fed predicts a GDP contraction of 2.4% in January-March 2025. If confirmed, the growth rate will turn negative for the first time in the last three years.
In Green's opinion, the resilience that previously contributed to the growth of risky assets is giving way to deeper structural problems.
'Investors should be prepared for a rotation into strong areas, rather than holding onto past winners that may face difficulties in new conditions,' he recommended.
The CEO of deVere Group noted that alternative assets are becoming increasingly significant, gold remains a reliable tool for protection against volatility, and Bitcoin has the potential for further institutional recognition as digital gold.
CEO of BlackRock Larry Fink shares Green's opinion. According to the top manager, inflation in the US will continue to rise in the next six to nine months due to Trump's 'nationalist' policies, while investors do not fully assess it.
The head of markets at YouHodler Ruslan Lienha expressed concern about the current correction, noting that it may develop into a medium-term bear trend.
The specialist noted the increased uncertainty, which raises the status of government bonds as a safe haven for capital. Lienha doubted that Bitcoin can fulfill this role due to its high volatility.
'The first cryptocurrency behaves more like high-risk tech stocks. […] The medium-term indicators of digital gold will remain in line with the overall trends of the stock market,' he indicated.
Recall that former BitMEX head Arthur Hayes allowed for a drop in Bitcoin to $70,000 before a recovery.
Previously, a researcher under the nickname MarktQuant predicted a recovery of the first cryptocurrency to $258,445 by the end of September.