Bitcoin’s dual role as risk asset and hedge boosts long-term appeal

Bitcoin has recently shown both risk-asset characteristics and hedging qualities against uncertainty at the same time, strengthening its appeal as a long-term hard asset, according to Zaye Capital Markets, a global financial market research firm. Wu Blockchain reported that the firm said Bitcoin continues to behave like a risk asset while also serving as a hedge against inflation, government debt and geopolitical uncertainty. The firm added that further gains would require genuine investor demand beyond buying driven by traders covering bearish positions. It also said institutional inflows, regulatory progress and conditions in the U.S. Treasury market could become more important drivers of Bitcoin’s price than simple momentum going forward.