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Expert: gold and bitcoin play a different role in the portfolios of institutions

Forklog / 06.08.2024 / 16:28
Expert: gold and bitcoin play a different role in the portfolios of institutions

eToro analyst Josh Gilbert is convinced that large investors are unlikely to consider the first cryptocurrency as a protective asset along with gold. This is reported by Bloomberg.

"These two instruments do not play the same role in investment portfolios," the specialist noted.

According to the news agency, the correlation between gold and bitcoin turned negative in July.

Comparison of the dynamics of bitcoin and gold. Data: Bloomberg.

Gilbert is confident that cryptocurrencies are particularly vulnerable to potential economic risks such as a possible recession due to the prolonged restrictive policy of the Fed.

"If investors panic and want to reduce leverage, digital assets often become the first on the list," he noted.

Jim Kramer, the host of the Mad Money show, noted that against the background of the recent correction, gold "held up much better than cryptocurrency."

Remember this: gold held up a lot better than crypto...

— Jim Cramer (@jimcramer) August 5, 2024 40-day correlation of bitcoin and gold. Data: Bloomberg.

The head of the Galaxy Research department is convinced that many investors view bitcoin as a kind of "venture bet on its future as digital gold."

Despite a drop of ~14% in recent days, the first cryptocurrency has grown by 27% since the beginning of the year. Over the same period, gold has risen in price by ~ 16%.

Earlier, ForkLog discussed with experts the key support levels of bitcoin and the conditions for its growth.

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