Janice R. Andrews
Bitcoin (BTC-USD) continues to exhibit extreme volatility, trading below $100,000 as global policy uncertainty weighs on markets. Recent back-and-forth tariff policies by the Trump administration targeting Mexico, Canada, and China have added to the cryptocurrency’s instability.
Cornell University professor Eswar Prasad, author of The Future of Money, highlights that bitcoin is no longer acting as a reliable hedge against inflation. Instead, it is behaving like a high-risk asset. “Given that bitcoin lacks intrinsic value, it’s acting like an even riskier asset than others,” Prasad explained during a recent interview.
Despite short-term turbulence, Prasad remains optimistic about the long-term potential of crypto assets. He suggests that lighter regulation and increasing government legitimization could create a favorable environment for cryptocurrencies. However, he cautions that short-term fluctuations will likely remain tied to geopolitical events and policy shifts.
As bitcoin continues to navigate uncertainty, investors are advised to approach the market with caution, recognizing its heightened risk profile in the current climate.
