As Bitcoin’s volatility returns, is the risk-reward worth it?

Bitcoin’s volatility has always been a subject of intense debate, especially during times of economic uncertainty. As geopolitical tensions rise and global markets fluctuate, the cryptocurrency’s behavior continues to intrigue both seasoned investors and newcomers. In a recent discussion, Roundtable host Rob Nelson, CEO and Co-Founder at Lamina1 Rebecca Barkin, and Host of Crypto Lifer Sam Price shared their views on the market’s recent turbulence and Bitcoin’s long-term potential.

Rob Nelson kicked off the discussion by addressing the widespread panic in the crypto market. He emphasized that the price swings may seem extreme, but they are understandable given the broader economic context. Nelson pointed to the influence of various macroeconomic factors, such as the potential for a major conflict in the Middle East and the strength of the dollar against other currencies.

Rebecca Barkin highlighted the significant impact of macroeconomic influences on the cryptocurrency market. She noted that the overall market has been performing poorly, with bitcoin down 18% in part due to Japan’s Nikkei index falling 12% on Monday — its biggest daily decline since 1987. Barkin also cited other contributing factors, such as a subpar jobs report and waning interest in AI investments. She emphasized that while bitcoin has become a more stable asset class, it is not immune to broader economic trends.

Adding to the discussion, Sam Price highlighted the cryptocurrency’s long-term investment potential by comparing bitcoin to gold. Price argued that bitcoin, like gold, should be considered a long-term hold, typically for a decade or more. He stressed the importance of not getting caught up in short-term price movements and viewed bitcoin as a relatively safe asset during times of economic turmoil.

Nelson echoed Price’s sentiment, acknowledging that bitcoin can experience volatility but said it remains a strong digital asset that provides a hedge in uncertain economic conditions. Nelson and Price highlighted bitcoin’s unique advantages, such as its portability and ability to cross borders with memorized seed phrases, which set it apart from traditional gold.