tl;dr
Bitcoin is being considered as a potential hedge against inflation amidst growing market uncertainty. Standard Chartered’s Head of Digital Assets Research and WeFi’s Head of Growth provided exclusive insights on this topic. While traditionally used as an inflation hedge, Bitcoin is now being viewed ...
Bitcoin is increasingly being viewed as a potential hedge against inflation amidst growing market uncertainty. Standard Chartered’s Head of Digital Assets Research and WeFi’s Head of Growth provided exclusive insights on this topic.
While traditionally used as an inflation hedge, Bitcoin is now being viewed as an indicator for the tech industry. It is increasingly integrated with traditional finance and shows correlation with the NASDAQ. In an exclusive interview, Geoff Kendrick suggested that Bitcoin may be better viewed as a tech stock, potentially outperforming traditional tech stocks.
Additionally, concerns over US tariffs and economic uncertainty are impacting Bitcoin and other risk-on assets. As a result, Bitcoin's role as an inflation hedge is becoming more relevant, especially as it shows potential for global appeal and resilience.
Since the early days of the crypto space, investors have been using Bitcoin as a hedge against inflation. However, it’s only recently that institutional investors are beginning to treat it the same way. According to Geoff Kendrick, the Head of Digital Assets Research at Standard Chartered, the trend of Bitcoin as an inflation hedge is increasing. Kendrick noted that Bitcoin is highly correlated with the NASDAQ in the short term, indicating that it might represent more than an inflation hedge, potentially serving as an ersatz tech stock.
Crypto markets are closely tracking investor sentiment ahead of Trump’s tariff announcement, with growing concerns over the potential economic impact. Bitcoin’s increasing correlation with traditional markets has amplified its exposure to broader macroeconomic trends, making it more sensitive to the risk-off sentiment that has affected equity markets.