"Bitcoin (BTC), Stock Market Decline is the Biggest Risk... Not Much Worry Due to Trump's Policies"
Summary
- A decline in the U.S. stock market could be a major threat to Bitcoin (BTC), according to analysis.
- Concerns about a market decline are reduced due to Trump's policies.
- Bitcoin is described as a 'hot sauce' asset with high profitability and volatility, and it may experience a larger drop than gold.
An analysis has emerged that if the U.S. stock market declines, it could pose a threat to Bitcoin (BTC). However, there is also a forecast that such adjustments are unlikely due to the policies of U.S. President-elect Trump.
On the 13th, Eric Balchunas, a senior ETF analyst at Bloomberg, stated on X (formerly Twitter), "I have consistently said that the decline in the stock market would be the biggest risk to Bitcoin," adding, "Trump will probably do everything he can to maintain the stock market. Personally, I'm not too worried about such short-term adjustments, but who knows."
Balchunas added, "Bitcoin has its advantages as a 'hot sauce' asset, but it also has disadvantages," noting, "Recently, gold has also been on a decline, but the drop has been much less." The term 'hot sauce asset' is a metaphorical expression for assets with high profitability and volatility.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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