The dramatic decline in Bitcoin's value from a recent record high has not only erased its year-to-date gains but also sparked discussions about the feasibility of aggressive price targets for the cryptocurrency by 2026. As analysts speculate on future price movements, they also question Bitcoin's consistency as a store of value.
"It's still going to have to prove itself as that digital store value over a longer period of time," noted Nate Geraci, President of NovaDius Wealth Management, during an appearance on CNBC's "ETF Edge" podcast.
Bitcoin has long been likened to "digital gold," a comparison that attracts investors due to gold's reputation for safeguarding portfolios amid broader market stress and its movement that is largely uncorrelated with stocks and other risk assets. However, Bitcoin's similarity to a risk asset during equity selloffs challenges this 'digital gold' narrative. After experiencing two distinct periods of volatility in 2025, Bitcoin has yet to provide a definitive answer to whether it truly replicates gold's behavior.
"The track record thus far is mixed," admitted Geraci.
He referenced the "tariff tantrum" period in April, during which stock market selloffs followed President Trump's announcement of extensive global tariffs. During this volatile phase, Bitcoin's strong performance captured investor attention. "That caught a lot of investors' attention," he explained.
Despite this, recent market downturns spurred by weakness in technology stocks led to a broader selloff in cryptocurrencies, including Bitcoin. Notably, Bitcoin dropped more significantly compared to the stock market.
"The jury is still out," concluded Geraci.