Eric Balchunas, Bloomberg’s senior ETF analyst, has dispelled claims that Bitcoin, as a store of value, should not react negatively to the recent US stock crash.
Concerns around the looming tariff war between major countries, like the United States, Canada, and China, severely impact the global stock market. Particularly, the US stock market has been on the wrong side of the trade war, recording its highest daily decline in 30 months, with over $1 trillion wiped out on Monday.
While the S&P 500, Dow Jones, and Nasdaq crashed, Bitcoin followed suit. On Tuesday, the asset dumped below $80,000 for the first time since early November amid pessimistic macroeconomics and incessant outflows from US Bitcoin ETFs.
Meanwhile, Bitcoin’s behavior in correlation with US stocks has sparked a debate on its position as a store of value. Bloomberg’s senior ETF analyst Eric Balchunas has weighed in on the hot topic.
Bitcoin Not Hedge Against Stock Crash
ETF store president Nate Geraci recently shared his opinion on Bitcoin’s reaction to the US stock crash. He branded the scenario a “showtime” for the premier asset, insinuating that it should stand out as a hedge against the crash.
Geraci suggested that if Bitcoin is the “store of value” or “hedge” that investors bill it as, then it should act in that capacity now. He argued that the leading cryptocurrency ought not behave as a high-beta asset amid US stock sell-offs.
However, Balchunas has defended Bitcoin’s crash with stocks. He stressed that its hedge was against inflation and not against stock declines. Furthermore, the market expert highlighted that nothing has really withstood the decline, including the US Treasury bonds.
It isn’t a hedge against stock declines (what really is? Even treasuries aren’t that great at this) but rather a hedge against the global money printing, no? At least that’s how I would positioned it.
— Eric Balchunas (@EricBalchunas) March 12, 2025
As a result, he maintains that expecting Bitcoin to act as a store of value against this US stock crash was a bit out of place, at least in his own view of the pioneering cryptocurrency.
Bitcoin Still Transitioning to a Serious Asset Class
Moreover, enthusiasts weighed in on the argument, with some insisting that expecting Bitcoin to act as a hedge against market conditions is somewhat too early to ask of the asset.
A reaction highlighted that Bitcoin is still transitioning from once a highly speculative coin to a maturing asset class. As a result of this, it is still early to expect complete protection against stock crashes from the relatively new investment vehicle.
Another reaction supported this line of thought, insisting that investors need to first experience a paradigm shift from their current view of Bitcoin as a speculative asset. Furthermore, he noted that Bitcoin must be worth at least millions per coin and gain mainstream adoption to attain stability like gold.
Meanwhile, data has shown that Bitcoin has shown more resilience in the face of geopolitical tensions than gold and the S&P 500. A chart shows the asset’s price performance during major global events compared to both traditional asset classes.
In the meantime, Bitcoin trades at $82,783, up 2.66% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
