Recent fluctuations in Bitcoin’s price are prompting analysts at Swiss crypto bank Sygnum to liken it to high-growth tech stocks rather than traditional safe-haven assets like gold. In a newly released market outlook, Sygnum’s research team explores whether Bitcoin still holds its “digital gold” status or if it increasingly acts as a volatile proxy for the broader crypto market. This shift in perception persists even though figures like Federal Reserve Chair Jerome Powell have described Bitcoin as a potential store of value and alternative to gold.
Sygnum analysts note that Bitcoin’s price volatility resembles high-beta technology stocks more than traditional hedge assets. They argue that Bitcoin’s value largely comes from its role as a store of value, with only a small fraction linked to network applications. Traditionally, Ethereum has been seen as the sector’s innovation hub, with Bitcoin considered a digital counterpart to gold. However, recent trends indicate Bitcoin is becoming the preferred choice for new crypto investors, especially with weak interest in spot Ethereum ETFs.
Sygnum cautions that if Bitcoin continues to behave like a “Nasdaq on steroids,” its status as a reserve asset could be at risk. The bank suggests Bitcoin’s long-term role may depend on U.S. policy decisions, influencing whether it becomes a true safe-haven or remains a market-sensitive asset.
Despite its reputation as a potential hedge against geopolitical and fiscal instability, Bitcoin still trades like a risk asset, moving in tandem with equities. Garrison Yang, co-founder of Web3 development studio Mirai Labs, notes that Bitcoin’s strong correlation with traditional financial markets challenges its hedge narrative. For Bitcoin to truly establish itself as a macroeconomic hedge, it must break away from its correlation with U.S. equities and other risk assets.
Yang adds that Bitcoin needs a significant paradigm shift, such as being adopted globally as a functional currency backed by Bitcoin itself, to detach from the broader financial system.
