Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Bloomberg strategists have said more firms may consider cryptocurrency treasury strategies. Bitcoin has drawn praise for its relative strength and stability despite market uncertainty. Public corporations are not the only ones that may be considering Bitcoin as a hedge.

The global financial system has been facing a massive stress test over the past few months and cryptocurrencies, particularly Bitcoin, may be emerging as the winners.

At least, that is what Bloomberg Intelligence strategists have recently suggested.

‘A Hedge’

In a Tuesday note, Bloomberg strategists Lu Yeung and Breanne Dougherty opined that “more public firms might rethink crypto as U.S. exceptionalism dims.”

Don't Miss:

Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – unlock  the power of alternative investments including a Crypto IRA within your retirement account.

U.S. exceptionalism is the idea that the U.S. is distinctive or exemplary compared to other nations. In finance, this exceptionalism is typically reflected by U.S. markets generally outperforming other markets and the dollar and U.S. Treasury bonds seeing greater demand in times of uncertainty.

Amid President Donald Trump‘s global tariff campaign, however, this idea has shown signs of cracks. The DXY, an index tracking the value of the dollar against a basket of currencies, has continued a rapid decline to three-year lows even as yields on Treasury bonds have risen in signs of declining demand despite market uncertainty.

In this turbulent market environment, Bitcoin has drawn praise for its relative strength and stability. At the time of writing, the asset is trading at net zero change year-to-date and up 13% since Trump’s “Liberation Day” tariffs. In comparison, the S&P 500 is down 7% year-to-date and 2% since Liberation Day. The Nasdaq is a mixed bag, down 9% year-to-date but up 2% since Liberation Day.

Yeung and Dougherty wrote that against this backdrop, “some corporate managers could revisit whether it [Bitcoin] could be more resilient in the complicated global trade environment as a hedge against a weakening US dollar, the risk of stagflation and fears of potential peaking of US exceptionalism.”

Trending: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying tradeon Coinbase.

Indeed, these past few months have already seen GameStop (NYSE:GME) and Metaplanet adopt the Bitcoin treasury model made popular by Strategy (NASDAQ:MSTR). Adopting the strategy has also been suggested at Intuit Inc (NASDAQ:INTU) and McDonald’s (NYSE:MCD), though the latter has chosen to ignore the proposal.

Story Continues

Beyond Bitcoin, some firms also appear to be willing to take risks on more volatile cryptocurrencies known as altcoins. Over the past week, DeFi Development Corp. (NASDAQ:JNVR) has grabbed headlines for its Solana treasury strategy, a move that has seen its stock price soar as much as 1500% this month.

Public corporations are not the only ones that may be considering Bitcoin as a hedge. On Wednesday, Coinbase Institutional Head of Strategy John D’Agostino told CNBC  that institutional investors he had spoken to were increasingly seeing Bitcoin as a hedge against de-dollarization and inflation on par with gold and with a greater reward potential.

“When you do the work, there’s a very short list of assets that mirror the characteristics of gold. Bitcoin is on that short list,” he said, highlighting characteristics like its scarcity, lack of ties to any sovereign nation, liquidity, and ease of transfer.

Read Next:

A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Maximize saving for your retirement and cut down taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.

Image: Shutterstock

Send To MSN:  0

This article Bloomberg Strategists Say 'More Public Firms Might Rethink Crypto As US Exceptionalism Dims' originally appeared on Benzinga.com

View Comments