Bitcoin (BTC) has shown relative strength during a recent U.S. Treasuries sell-off, demonstrating resilience against stocks and the dollar. However, experts urge caution in interpreting its market role.
Bitcoin Outpaces Dow Jones
This month, amidst notable market fluctuations caused by the Treasuries sell-off, Bitcoin outperformed the Dow Jones by 7.1%, compared to a 6% decline in DJIA. However, Chief Market Strategist at Nationwide Financial, Mark Hackett, emphasizes that Bitcoin remains a risk-seeking asset rather than a safe haven.
Bitcoin's Evolving Role in Economic Uncertainty
According to CoinMarketCap data, Bitcoin continues to be a central player in the market with a price of $97,039.94 and holding a 63.87% market share. Currently, its market capitalization stands at $1.93 trillion, with a daily trading volume of $30.20 billion. Bitcoin has experienced a 4.79% decline over 90 days, contrasting with a 14.27% rise over 30 days.
Experts Warn of Risks
Mark Hackett stated: "It is 'too early' for Bitcoin bulls to claim that it has become a means of storing value, but this trend is worth paying attention to. Gold is obviously a defensive asset, while Bitcoin is more of a risk-seeking asset rather than a safe haven asset."
Despite showing relative resilience, Bitcoin's role as a safe asset remains in question. Experts are focusing on possible new trends and the impact of economic instability.
