Bitcoin's recent decline from its record highs has erased its gains for the year, prompting speculation about future price targets through 2026. However, beyond price projections, there's a crucial debate regarding Bitcoin's consistency as a store of value within investment portfolios. When will it reliably act as a 'digital gold'?
'Bitcoin still needs to prove itself over time as a digital store of value,' stated Nate Geraci, president of NovaDius Wealth Management, during CNBC's 'ETF Edge' podcast.
Bitcoin has long been likened to 'digital gold,' an analogy appealing to investors who view gold as a safe haven that diversifies portfolios during times of broader market stress, showcasing little correlation with stocks and other risk assets. Bitcoin's narrative as digital gold is questioned when it behaves like a risk asset during equity market downturns. In the wake of two notable volatility episodes in 2025, Bitcoin has yet to conclusively support its 'digital gold' reputation.
'The track record thus far is mixed,' Geraci noted.
He cited the 'tariff tantrum' market turmoil in April after President Trump's imposition of global tariffs, a period when Bitcoin's performance captured investors' attention by exceeding expectations. However, more recent technology stock declines have seen cryptocurrencies, including Bitcoin, also suffer losses, with Bitcoin's drop exceeding those of the stock market.
'The jury is still out,' Geraci concluded.