In This Article:
After a particularly volatile stretch of trading for the cryptocurrency, bitcoin (BTC-USD) hovers back below $100,000 amid President Trump's back-and-forth over tariff policies for Mexico, Canada, and China.
Cornell University professor Eswar Prasad joins Morning Brief to explain why bitcoin may not be acting as a hedge against inflation as once believed, instead now behaving more typically of a high-risk asset.
"In fact, given that there isn't any clear intrinsic value, which would allow for a valuation model to pin down the price of bitcoin, It's acting like an even riskier asset than any other," The Future of Money author continues.
Prasad also suggests that despite policy uncertainty from the Trump administration, the broader environment remains favorable for crypto assets in the long-term, with the potential for lighter regulation and government legitimization. However, he notes short-term market fluctuations will still be influenced by broader geopolitical events.
Related Videos
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Josh Lynch