Nobel Winner: Bitcoin Is Not a Hedging Asset Amid the Fall of the Market

The status of Bitcoin as digital gold is now in the spotlight as this popular crypto continues to weaken to a three-month low as traders flock to safer assets.

Bitcoin (GDAXUSD) dropped 6.75% at $ 7,810 according to Investing.com data and remained around the session’s lowest level at $ 7,700, the lowest level since January 10.

This selling pressure is “another proof that Bitcoin is NOT good hedging, asset against risk assets during a period of selling,” claims Nobel economist Nouriel Roubini. “This (bitcoin) actually falls beyond the value of risky assets during a sell-off. So BTC is a hedge (— coins) in the case of a sell-off.”

Bitcoin (BitfinexUSD) has dropped more than 25% since last Friday and the value of its market capitalization has been removed as much as $ 26 billion.

However, there are some who resumed this popular crypto as long-term speculation.

“For those who have a long-term investment view, bitcoin really is a (chance) purchase during this decline,” Jehan Chu, one of the founders of Kinetic Capital, an investor in the pioneering blockchain told CNBC. “We can expect more of this volatility to be triggered by macro-shocks and financial health, but ultimately a long-term investment in future digital assets and key assets Bitcoin will be a superior strategy.”

Source: id.investing.com

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