Bitcoin, currently priced around $68,000, has experienced a dramatic decline of over 50% from its peak of $126,000 in October. As of recent assessments, the total market value of Bitcoin stands around $1.8 trillion, significantly smaller than traditional safe-havens like U.S. Treasurys ($27 trillion) and gold ($30 trillion), which together represent over $40 trillion in tradable form. This disparity suggests Bitcoin is ill-equipped to absorb capital escaping from the stock market, valued at $73 trillion.
Furthermore, data reveals an increasing correlation between Bitcoin and the tech-heavy Nasdaq Composite, nearing 75% in recent years, indicating that Bitcoin behaves more like a risk asset than a safe haven. This is particularly concerning for investors seeking to hedge against stock market volatility, as Bitcoin’s price movements frequently align with those of technology stocks. To better protect portfolios, experts recommend investing in companies that maintain human interaction, produce physical goods, and have proven business models—termed “AI Survivors.”
