Benzinga and Yahoo Finance LLC may receive commission or revenue from some items through the links provided below.
Bitcoin (CRYPTO: BTC) is increasingly resembling a highly volatile, liquid alternative to gold, according to analysts at Bernstein.
What Happened: In a recent note to clients, the analysts indicated that despite a decline of roughly 26% due to ongoing tariff disruptions and geopolitical tensions, Bitcoin has outperformed expectations when compared to its historical performance—particularly in relation to previous market shocks like COVID or rate hike cycles, which often resulted in drawdowns of 50–70%.
Don’t Miss: ‘Scrolling To UBI’ — Deloitte’s #1 fastest-growing software company offers users the opportunity to earn money via their phones. You can invest today starting at just $0.26/share with a minimum of $1000.
The asset’s durability during recent global market turbulence indicates a transition towards higher-quality capital and increased institutional adoption, positioning it as a “more liquid and higher-volatility version of gold.”
“Bitcoin serves as probabilistic gold on a time-scale,” the note stated. “It behaves like the most accessible and liquid risk-market during times when equities are not trading, acting as a weekend gauge for investor sentiment.”
The report from Bernstein suggests that although Bitcoin has not completely detached from traditional equity markets—and still has correlation with risk-on assets—it is increasingly seen as a long-term store of value.
With its market capitalization nearing $2 trillion, Bitcoin remains a small fraction of gold’s $20 trillion market cap, yet offers superior liquidity and double the volatility.
See Also: Hasbro, MGM, and Skechers are backing this AI marketing firm — invest pre-IPO from $0.55 per share.
Why It Matters: Institutional adoption is propelling this transformation.
Spot Bitcoin ETFs have attracted approximately $770 million in inflows year-to-date, despite recent price drops.
Additionally, large corporate investors like Strategy Inc. (NASDAQ:MSTR) are adopting longer-term strategies, with BTC now making up substantial portions of balance sheets for publicly traded companies.
“The ETF inflows remain positive and reflect higher-quality capital,” the analysts observed, noting that nearly 10% of Bitcoin’s total supply is now held in ETFs and corporate treasuries combined.
While macroeconomic challenges such as tariffs on mining hardware from China might affect Bitcoin mining capabilities short-term, U.S. miners like Riot (NASDAQ:RIOT), CleanSpark (NASDAQ:CLSK), and Core Scientific (NASDAQ:CORZ) are adapting to incorporate AI infrastructure in order to diversify their revenue sources and cope with geopolitical uncertainties.
