- Bitcoin’s year-long title as a safe-haven asset is now questioned.
- Experts like Willy Woo see BTC as a risk asset rather than a hedge.
- Ran Neuner posits that the initial hype surrounding the crypto no longer exists.
For years, Bitcoin has been described as a safe haven asset and a digital alternative to gold. But the idea is now being challenged as industry experts question the future of the pioneer cryptocurrency.
Amid the prevailing crypto market crash, Bitcoin is struggling to maintain momentum. Even as global uncertainty rises and the US dollar weakens, BTC has failed to match expectations. This has sparked fresh discussions and debate over the potential future of Bitcoin. Experts argue whether it behaves more like a risk asset than a proactive one, signalling a possible change in how the market views BTC.
Market Experts Rethink Bitcoin’s Role
The crypto market is currently facing one of its worst times, with Bitcoin becoming the biggest loser. BTC is trading below the $70k level, sparking caution. Amid this debacle, experts are debating the cryptocurrency’s potential future, with many questioning its safe haven title.
Traditionally, BTC has been viewed as a safe haven as investors approached it at times of economic stress. When geopolitical tensions rise and fiat currencies like the dollar fall, people search for assets like Bitcoin and gold for better investment opportunities.
But this safe haven narrative is now fading as many market watchers point out that the BTC price doesn’t always behave like a safer asset. Instead of consistently rising during uncertainty, Bitcoin has often moved in the same direction as riskier assets, especially during major market sell-offs.
This has led to a growing debate over whether the original narrative still holds true. Although the asset continues to attract long-term believers like Robert Kiyosaki, critics argue that its volatility and sensitivity to broader market sentiment makes its less dependable as a proactive hedge.
For many analysts, the conversation is shifting from accepting Bitcoin as a guaranteed shield against turmoil to viewing it as a high-risk, high-reward investment that reacts strongly to global financial trends.
Is BTC a Risk Asset?
“Bitcoin is a hedge against inflation and deflation,” stated ARK Invest’s Cathie Wood. However, economists like Henrik Zeberg defied this statement, stating,
“Just stop! Bitcoin is a Risk Asset. An ultimate Risk Asset. It crashes in Deflation and during Inflationary periods.”
Another market expert, Willy Woo, also supported the economist’s claims. In a X post earlier today, Woo asserted that Bitcoin behaves more as a risk asset. His post read, “BTC trades risk-on as an emerging asset. It will take a lot of time before its fundamental properties will reflect its trading in the markets as a better gold.”
Meanwhile, veteran analyst Ran Neuner shed light on the fading importance of Bitcoin. The initial hype remains no more. While the market participants expected much after the Bitcoin ETF launch, retail participation has now reached multi-year lows. Neuner stated,
“We fought for ETF approval. We fought for institutional access. We wanted it inside the system. Now it is. There is nothing to fight for anymore…If it’s not used as cash, and it didn’t meaningfully absorb the stress bid, then what exactly is the narrative?”
According to Neuner, the future of finance is not defined by BTC. Instead, he believes that it is shaped by the economy powered by AI agents. He cited, “AI agents won’t use banks. They won’t use credit cards. They’ll need instant, programmable settlement rails. That’s crypto.”
