Former IFF Economist Claims Bitcoin Has Been Relegated to the Sidelines
Analysis
Price Impact
HighA former chief economist claims bitcoin has been 'relegated to the sidelines' and failed as a safe haven, leading to significant price drops (25% since aug 22, 20% over the month) when it should have risen during a global flight to safety. this narrative undermines a key investment thesis for btc.
Trustworthiness
MedRobin brooks, a former chief economist, provides a credible economic perspective based on market observations. however, the crypto market often defies traditional economic analyses, and other firms (btig) hold conflicting, bullish views.
Price Direction
BearishThe core argument posits that bitcoin failed as a safe haven during a period of macro uncertainty, directly correlating with its recent significant price plunges. while there's a 10% rebound over the past week and a bullish long-term forecast from btig, the dominant sentiment conveyed by the economist points to a fundamental weakness in its investment thesis and subsequent price decline.
Time Effect
LongThe discussion revolves around bitcoin's fundamental role as an asset (safe haven vs. risky asset) and its potential performance in the long term (e.g., 'will bitcoin still shine in 2025?'), indicating a sustained re-evaluation of its market position.
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Article Content:
Cover image via www.youtube.com Read U.TODAY on Google News "Done and dusted" Will Bitcoin still shine in 2025? Advertisement 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 HOT Stories Morning Crypto Report: XRP Unlocks Apple and Google Pay in 40 Countries, Shiba Inu (SHIB) Aims at 32% Upside, Bitcoin Options Spike to $13.1 Billion Crypto Market Prediction: Can Bitcoin Break $90,000 on Recovery March? Shiba Inu (SHIB) Fresh Rally Starts, Is XRP Building Bullish Momentum? Coinbase's Armstrong Angers Bitcoin Maximalists by Praising Ethereum's Buterin Shiba Inu (SHIB) Price to Remove Zero, XRP on Edge of 30% Breakout, Bitcoin (BTC) Prints Insane 36,380% Liquidation Imbalance – Crypto News Digest 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). Advertisement 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. #Bitcoin Price Prediction