Bitcoin's recent sharp decline from its record high this year has erased the gains it had accumulated, sparking discussions about the feasibility of aggressive price targets for the cryptocurrency as we move towards 2026. Beyond price fluctuations, a key issue revolves around bitcoin's genuine role in an investment portfolio: when will it consistently function as a reliable store of value?
Nate Geraci, president of NovaDius Wealth Management, mentioned on the CNBC 'ETF Edge' podcast, "It's still going to have to prove itself as that digital store value over a longer period of time."
Bitcoin is often likened to "digital gold," a compelling analogy for investors, especially given gold's reputation for safeguarding portfolios during broader market disruptions by exhibiting a non-correlated behavior to stocks and other risk assets. However, bitcoin's credibility under this 'digital gold' narrative weakens each time it behaves like a risk asset during stock market selloffs. In 2025, after enduring two notable periods of volatility, bitcoin still hasn't definitively answered the digital gold question.
"The track record thus far is mixed," Geraci observed.
He referred to the "tariff tantrum" episode in April, when President Trump announced expansive global tariffs leading to stock market volatility during which bitcoin performed markedly well, drawing a lot of investor attention.
Nonetheless, in more recent times, as technology stocks faced downturns, bitcoin and other cryptocurrencies also experienced selloffs, with bitcoin suffering a more substantial decline compared to the stock market, Geraci noted.
"The jury is still out," Geraci concluded.