Economist Noelle Acheson Shares the Most Important Level for Bitcoin

On a very turbulent day for global markets, cryptocurrencies was one of the most affected entities and Bitcoin It had its worst day since June 2022, with a 15% drop.

This sharp decline has reignited debate over Bitcoin’s reputation as a ‘safe haven’ asset and a hedge against market uncertainty.

Bitcoin’s sharp decline follows a weekend of selling in broader markets. The Dow Jones Industrial Average fell as much as 1,000 points on Monday, adding to Friday’s 611-point drop. Meanwhile, the tech-heavy Nasdaq Composite fell as much as 6% at one point. Bitcoin has lost as much as 17% of its value, raising concerns among investors.

During periods of market turmoil, Bitcoin is often expected to defy broader trends. But crypto investors and analysts argue that Bitcoin’s multifaceted nature makes it both a risk asset and a store of value. “Bitcoin is a hedge against uncertainty, it’s also a risk asset, and it’s also an investment in interest rates, so many things. In a way, that’s why it tends to have a more solid footing than other risk assets like stocks because of the diversity of its trends,” Noelle Acheson, economist and author of the newsletter “Crypto Is Macro Now,” told CNBC.

Despite recent losses, Bitcoin is still up nearly 20% for the year compared to the S&P 500’s 9% gain.

Before this weekend’s turmoil, Bitcoin had found support around $55,000 but struggled to break above the $70,000 ceiling. Acheson suggested that this level of support could attract value investors. “Value investors would see $55,000 as a very good price to enter a position, especially if Bitcoin is going to be a hedge against the world’s structural turmoil over the long term,” he added.

*This is not investment advice.