eToro analyst: Gold and Bitcoin do not play the same role in a portfolio

Data compiled by Bloomberg shows that Bitcoin and precious metals were negatively correlated in July. eToro analyst Josh Gilbert said: "It is unrealistic to think that institutional investors allocate funds to Bitcoin for the same reasons as gold. The two assets do not play the same role in the portfolio." Some observers believe that Bitcoin's plunge supports the view that it is an asset class that is particularly vulnerable to potential dangers (such as the Federal Reserve waiting too long to cut interest rates and causing the economy to fall into recession). Gilbert said: "If investors panic or want to deleverage, cryptocurrencies are often the preferred assets." (Jinshi)