Volatility is Back, and It’s Weighing on Bitcoin. Is Crypto a Hedge or a Risk Asset This Time?
Key Takeaways
- Geopolitical uncertainty thwarted bitcoin’s advance. Crypto-linked stocks also declined.
- Bitcoin’s continued underperformance as a safe-haven asset relative to gold raises questions around its role in investor portfolios.
Geopolitical tension is putting the shine in hedges like gold. Digital gold, not so much.
Volatility has soared after President Donald Trump’s latest comments suggested the U.S. might take Greenland by force. The CBOE Volatility Index, also known as the “fear gauge,” surged Tuesday above the level that suggests stability in U.S. stocks. As investors panned risk assets, the price of bitcoin also took a hit.
Today’s move has for now thwarted bitcoin’s latest attempt to retake $100,000 for the first…
