As per BitMedia, Jonathan Dane, co-founder of Defiant Capital, warned that Bitcoin remains an extremely volatile and high-risk digital asset. He emphasized that Bitcoin's price is prone to sudden sharp fluctuations, which can lead to significant losses for inexperienced traders. Dane noted that while some crypto investors and bloggers compare Bitcoin's long-term returns to those of the 'Magnificent Seven' tech stocks, its volatility far exceeds that of many assets within those companies. He also stated that Bitcoin's recent seven-year performance has diverged from the traditional 'digital gold' narrative, as it now exhibits high correlation with stock markets and volatility similar to large-cap tech firms. According to Dane, Bitcoin's risk premium is not economically justified, and it should be viewed as a new asset class with a unique risk-return profile.
Defiant Capital Co-Founder Warns Against Idealizing Bitcoin Investments
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