{"id":148718,"date":"2025-02-05T20:00:18","date_gmt":"2025-02-05T18:00:18","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=148718"},"modified":"2025-02-05T16:34:09","modified_gmt":"2025-02-05T14:34:09","slug":"market-volatility-raises-doubts-on-cryptocurrencies-as-safe-haven","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/market-volatility-raises-doubts-on-cryptocurrencies-as-safe-haven\/","title":{"rendered":"Market Volatility Raises Doubts on Cryptocurrencies as Safe Haven"},"content":{"rendered":"

In light of the recent downturn, which saw Ethereum<\/a><\/strong> drop by 27%, Devitt made it clear<\/a> <\/strong>that cryptocurrencies remain highly speculative, classifying them as \u201crisk-on\u201d assets. She believes that the volatility inherent in these digital assets makes them unsuitable for investors seeking stability in turbulent markets.<\/p>\n

Refuting the notion that cryptocurrencies could weather a financial storm like traditional safe haven assets, Devitt stated, \u201cWe don\u2019t yet have enough comprehensive data to assess how they will behave if the market takes a serious downturn.\u201d<\/p>\n

Her skepticism is rooted in the lack of understanding regarding how crypto assets respond to key economic factors such as inflation and interest rates. While some claim that Bitcoin<\/a><\/strong> could act as a form of digital gold, Devitt doesn\u2019t see it that way. \u201cBitcoin might provide some form of protection against fiat currency depreciation, but it\u2019s far from the secure hedge some imagine it to be,\u201d she noted.<\/p>\n