In a recent interview, Robin Brooks, former chief economist at the Institute of International Finance, has opined that Bitcoin has been relegated to the sidelines.
If Bitcoin were truly the "ultimate hedge" against fiat debasement, then this moment should have been its time to shine since there is a global flight to safety. However, the market has treated it as a risky asset, not a safe haven.
"Done and dusted"
Since Powell’s dovish Jackson Hole speech on August 22, global investors have begun aggressively seeking safe-haven assets because they fear debt monetization, currency debasement, and macro uncertainty
This has triggered the red-hot "debasement trade," with investors piling into assets that historically protect wealth during periods of uncertainty. Such assets include precious metals and the fiat currencies of low-debt countries (Sweden, Switzerland).
Bitcoin, however, has been ignored. As noted by Brooks, the flagship cryptocurrency cratered at the exact moment when a safe haven should rise. Since August 22, Bitcoin has plunged by more than 25%.
The chapter about Bitcoin as a safe haven asset is "done and dusted," according to Brooks.
Will Bitcoin still shine in 2025?
Bitcoin's performance has so far been extremely underwhelming this year. However, research firm BTIG expects Bitcoin to rebound to $100,000 after its recent 36% peak-to-trough correction.
It has argued that the current move is a “reflex rally” that still has room to run.
Bitcoin has climbed to about $92,450, up 10% over the past week. However, it remains 20% lower over the month amid macro uncertainty and investor rotation into safe-haven assets like gold.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team