Gold and Bitcoin Serve Distinct Roles in Institutional Portfolios, Says Expert

eToro analyst Josh Gilbert asserts that major investors are unlikely to view the leading cryptocurrency as a safe-haven asset akin to gold. This was reported by Bloomberg.

“These two instruments do not play the same role in investment portfolios,” the specialist noted.

According to the news agency, the correlation between gold and Bitcoin turned negative in July.

Gilbert is convinced that cryptocurrencies are particularly vulnerable to potential economic risks such as a possible recession due to the prolonged restrictive policy of the Fed.

“If investors panic and want to reduce leverage, digital assets often top the list,” he noted.

Mad Money host Jim Cramer remarked that amid the recent correction, gold “held up a lot better than cryptocurrency.”

Remember this: gold held up a lot better than crypto…

— Jim Cramer (@jimcramer) August 5, 2024

The head of research at Galaxy Research believes that many investors view Bitcoin as a sort of “venture bet on its future as digital gold.”

Despite a drop of ~14% in recent days, the leading cryptocurrency has risen by 27% since the beginning of the year. During the same period, gold has appreciated by ~16%.

Earlier, ForkLog discussed with experts the key support levels for Bitcoin and the conditions for its growth.