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Bernstein is Impressed by Bitcoin: Much More Resilient Compared to Other Crises! - Coin Bulletin
Although U.S. President Donald Trump's tariffs have caused significant upheavals in both the cryptocurrency and traditional markets recently, analysts are quite affected by the resistance that Bitcoin is showing at (BTC).
Bernstein analysts indicate that based on historical data, the largest cryptocurrency has experienced declines between %50 and %70 during previous crisis periods, such as market panic caused by COVID-19 and interest rate shocks. However, the current %26 decline shows that the demand for Bitcoin is driven by more resilient capital.
Analysts emphasized that Bitcoin's market price movements being a leading indicator of which direction the risk is, do not affect its long-term success as a store of value in the digital realm. "In our view, Bitcoin serves as a probabilistic 'gold' over time," the analysts say, noting that Bitcoin is traded as a version of gold that has higher volatility and is more liquid.
Bitcoin has started to be regarded as a store of value like gold in recent years. However, Bitcoin's volatility makes it a riskier investment compared to gold. Nevertheless, analysts believe that this high volatility and liquidity further reinforces Bitcoin's role as the "gold" in the digital realm.