In a stunning development, US Treasury Secretary Scott Bessent hailed Bitcoin as an “emerging store of value.” Comparing BTC with gold, Bessent highlighted the latter’s resilience to the broader financial market debacle.
Notably, the US Treasury Secretary’s statement comes in response to Bitcoin’s recent decoupling from traditional markets. Let’s discuss how Bessent evaluated the cryptocurrency’s rebound.
Scott Bessent Compares Bitcoin To Gold, Calls It a Store of Value
In an interview with podcaster Tucker Carlson, US Treasury Secretary Scott Bessent has shared his view on the recent rebound of Bitcoin. As Bitcoin remains stable around the $83k level despite the stock market’s largest collapse since 2020, Bessent hails it an “emerging store of value.”
In addition, the Treasury Secretary presented an analogy between Bitcoin and gold, emphasizing the assets’ potential. He stated, “Bitcoin is becoming a store of value, gold’s has historically been a store of value, a lot of different stores of value over time.”
Stock Market Falls, Bitcoin Remains Strong
Scott Bessent’s optimistic comments on Bitcoin comes in response to its recent stability despite the broader negative trend. Following Donald Trump’s tariff announcement, the stock market around the world fell sharply. Bucking the trend, BTC remains stable around a significant point of $83,000.
Recently, Matrixport, a financial services platform, spotted a strong correlation between Bitcoin and the stock market. Though BTC remained resilient to the previous equity market crash, Matrixport predicted that the cryptocurrency would follow stock market trends following tariff announcement.
In its latest analysis, Matrixport identified a different sentiment, with BTC poised for a significant upsurge, defying the correlation.
Tariffs May Lead to Long-Term Negotiation, Says Scott Bessent
In response to the market volatility after Trump’s tariff announcement, Scott Bessent opined that this could lead to a longer negotiation process. While this prolonged period could include multiple discussions between nations, it could result in market volatility, economic uncertainty, and potentially even inflation. In such a scenario, investors could look for alternative assets like Bitcoin as a hedge.
Commenting on this potential market shift, David Hernandez, crypto investment specialist at 21Shares, stated,
As risk assets continue to sell off, investors may increasingly rotate into traditional hedges like bonds and gold—or into bitcoin, which has shown notable resilience relative to equities in recent days. Gold, a traditional safe haven asset, is up around 15% so far this year as traders and central banks buy it to hedge against economic and geopolitical uncertainties…Bitcoin’s price action this week has been a true testament to its investment case as an emerging store of value and potential for uncorrelated returns.
As of press time, Bitcoin trades at $83, 403, up 1.17% in a day. Despite a 0.11% hike over the last seven days, BTC dropped by nearly 8% in a month.
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