In a recent appearance on Bloomberg Crypto, Dushyant Shahrawat discussed how sentiment around Bitcoin appears to have changed. The world’s premier cryptocurrency is down 23.8% year to date and by 25% since January 29. Multiple media reports suggest that the weaker performance is due to the ongoing conflict in the Middle East. Shahrawat and the Bloomberg hosts discussed how Bitcoin no longer appeared to be a safe-haven asset.
He noted that when Bitcoin “was” a safe haven asset a couple of years ago, it was viewed as a “store of value, safe haven asset,” and the “higher correlations” showed “that Bitcoin was negatively correlated to the S&P 500,” but recent data paints a different picture. According to Shahrawat, in the last 12 months the correlation has risen to about 0.56, even up to 0.6. As a result, he believes Bitcoin has become more of a risk-on trade or risk-off trade. He argues that institutional involvement through ETFs means Bitcoin is increasingly held in diversified portfolios, so it’s less of a safe-haven asset and more highly correlated with the S&P 500.
To assemble Jim Cramer’s biggest cryptocurrency stock hits and misses, the piece highlighted cryptocurrency and blockchain stocks he was optimistic about in 2025. Strategy Inc. (NASDAQ:MSTR) is one of the most well-known Bitcoin companies in the world due to its multi-billion dollar holdings. Its shares are down by 56% over the past year and by 61% since Cramer discussed the firm in January 2025. Over the year, the world’s premier cryptocurrency is down by 18%, and since November 10th, it has lost 36%.
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