Bloomberg’s senior ETF analyst Eric Balchunas has dismissed the notion that Bitcoin, as a store of value, should react negatively to the recent crash in U.S. stocks.
Concerns over an imminent tariff war among major countries such as the U.S., Canada, and China have severely impacted global stock markets. In particular, the U.S. stock market recorded its highest daily decline in 30 months, costing over $1 trillion on Monday due to the trade war.
As the S&P 500, Dow Jones, and Nasdaq plummeted, Bitcoin followed suit. On Tuesday, the cryptocurrency dropped below $80,000 for the first time since early November, attributed to pessimistic macroeconomics and ongoing outflows from U.S. Bitcoin ETFs.
Meanwhile, Bitcoin’s behavior related to U.S. stocks has sparked debate over its status as a store of value. Bloomberg’s senior ETF analyst Eric Balchunas has weighed in on this hot topic.
Bitcoin is Not a Hedge Against Stock Crashes
ETF Store president Nate Geraci shared his view on Bitcoin’s response to the U.S. stock crash. He labeled the scenario as a “performance test” for the major asset and suggested it should stand out as a hedge against the collision.
Geraci suggested that if Bitcoin is to be regarded as a “store of value” or “hedge” that investors can rely on, it should act in that capacity now. He believes that in the face of a U.S. stock sell-off, the leading cryptocurrency should not behave as a high-beta asset.
However, Balchunas defended Bitcoin’s correlation with the stock crash. He emphasized that its hedge is against inflation, not against falling stocks. Furthermore, market experts pointed out that there hasn’t been a real decline, including U.S. Treasury bonds.
“This is not a hedge against stock declines (what is, really? Even Treasuries aren’t great), but a hedge against global currency printing, right? At least that’s how I position it.” – Eric Balchunas (@EricbalChunas) March 12, 2025
As a result, he insisted that expecting Bitcoin to serve as a store of value against this U.S. stock crash is somewhat misplaced, at least in his view of the pioneering cryptocurrency.
Bitcoin is Still Transitioning to a Serious Asset Class
In addition, enthusiasts weighed in on the argument, with some asserting that anticipating Bitcoin as a hedge against market conditions is premature.
One response emphasized that Bitcoin is still transitioning from being a highly speculative coin to a mature asset class. Therefore, it is unrealistic to expect a completely new investment tool to fully protect against a stock crash.
Another response supported this notion, insisting that investors need to first experience the paradigm shift from viewing Bitcoin as a speculative asset. Furthermore, he noted that Bitcoin must be valued at least in the millions per coin and achieve mainstream adoption to attain stability comparable to gold.
Meanwhile, data shows that Bitcoin has exhibited greater resilience than gold and the S&P 500 in the face of geopolitical tensions. Charts display asset price performance during significant global events compared to the two traditional asset classes.
Bitcoin’s Response to Major Geopolitical Events
Currently, Bitcoin’s trading price stands at $82,783, having increased by 2.66% over the past 24 hours.
