Bitcoin is still a speculative asset: Former Bridgewater Associates CIO

In an extremely tense political environment where tech stocks are experiencing a massive sell-off, enthusiasm for Bitcoin ebbs and flows like the ocean.

And this makes it even more confusing for the average investor to understand how or whether to invest in Bitcoin.

“For now, this is largely a retail speculative asset,” former Bridgewater Associates chief investment strategist Rebecca Patterson told Yahoo Finance Editor-in-Chief Brian Sozzi in a conversation on the Opening Bid podcast (watch the video above or listen here).

Patterson is no stranger to literal highs.

His childhood in Florida was spent watching the space program launch dozens of vehicles into the sky. Bitcoin may be smaller than the spacecraft, but for some, its rise to the mainstream is quite the spectacle.

“[Crypto has] “It’s going to become a really interesting, innovative sub-asset class for speculative investors,” Patterson added.

The wild price swings in Bitcoin support Patterson’s claim.

The price of Bitcoin has fallen by around 25% in the past few weeks as part of a general sell-off in risky assets.

Rising mainstream appeal despite increased volatility has caught the attention of White House hopefuls, and with it comes greater price volatility.

Former President Donald Trump, who has previously taken a stance against cryptocurrencies, appeared more enthusiastic at the closely followed Bitcoin 2024 conference in late July.

In addition to accepting crypto campaign donations, he also announced plans to oust current SEC Chairman Gary Gensler, who is disliked by the crypto community, and create a “strategic bitcoin reserve.”

His plans include turning the US into a “crypto superpower” and beating China at the game.

“We will have regulations, but from now on, the rules will be written by people who love your industry, not by people who hate your industry,” Trump said.

Bitcoin influencer and investor Anthony Pompliano said it makes sense for Trump to change his mind, given the more enthusiastic attitudes toward cryptocurrencies in his inner circle.

“I think he’s much more likeable than he was before,” Pompliano told Yahoo Finance.

Aside from Trump, other candidates for the presidency also voiced their support. RFK Jr. declared at the conference that bitcoin was crucial “to the country’s economic recovery.”

Vice President Kamala Harris has managed to remain a little more mysterious about her administration’s stance on crypto.

Democrats have historically been hesitant on crypto policy. Harris’ campaign recently reached out to crypto companies and is seeking more positive relationships, according to a report by the Financial Times.

The story continues

Pompliano said the crypto industry would welcome a revamp of its relationship with Harris.

Still, “the hype around [cryptocurrencies] “It’s still early days for institutional investors to embrace it,” Patterson said.

“If you’re a big pension fund, if you’re a sovereign wealth fund, there’s not enough liquidity to take a position in bitcoin and then pull it out or take your profit if you’re in a distressed environment. Those types of investors aren’t there yet in terms of size,” Patterson noted.

Three times a week on Opening Bid, Yahoo Finance Editor-in-Chief Brian Sozzi hosts insightful conversations and interviews with the biggest names in business and markets. Find more episodes in our video hub . Watch on your preferred streaming service . Or listen and subscribe on Apple Podcasts , Spotify , or wherever you find your favorite podcasts.

In the Opening Quote section below, Patterson goes against the crypto bulls.

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