Gold remains a reliable safe-haven asset, while Bitcoin continues to behave like high-risk tech stocks during periods of market instability. This conclusion was reached by experts surveyed by The Block.
Nigel Green, CEO of deVere Group, highlighted the accumulation of “warning signals” indicating the possibility of continued sell-offs in the stock market.
The executive pointed to weakening consumer sentiment, high inflation, and an increase in unemployment benefit claims.
He noted that the GDPNow model from the Federal Reserve Bank of Atlanta predicts a GDP contraction of 2.4% in January-March 2025. If confirmed, growth rates would turn negative for the first time in three years.
According to Green, the resilience that previously fueled the growth of risky assets is giving way to deeper structural issues.
“Investors should be prepared to rotate into strong areas rather than cling to past winners who may face challenges in new conditions,” he advised.
The CEO of deVere Group noted that alternative assets are becoming increasingly significant, with gold remaining a reliable tool for protection against volatility, while Bitcoin has the potential for further institutional recognition as digital gold.
BlackRock CEO Larry Fink shares Green’s view. According to the executive, U.S. inflation will continue to rise over the next six to nine months due to Trump’s “nationalistic” policies, which investors are not fully accounting for.
Ruslan Lienkha, Head of Markets at YouHodler, expressed concern about the current correction, noting that it could develop into a medium-term bear trend.
The specialist noted increased uncertainty, which enhances the status of government bonds as a safe haven for capital. Lienkha doubted that Bitcoin fulfills this role due to its high volatility.
“The first cryptocurrency behaves more like high-risk tech stocks. […] The medium-term performance of digital gold will remain in line with general stock market trends,” he stated.
Back in April, former BitMEX CEO Arthur Hayes suggested Bitcoin could drop to $70,000 before recovering.
Earlier, a researcher known as MarktQuant predicted the first cryptocurrency would recover to $258,445 by the end of September.