Ruslan Lienkha, YouHodler’s chief of markets, answered some questions about Bitcoin this week.
Could BTC’s recent movement signal a shift in how institutional investors treat Bitcoin (as a risk asset, hedge, or both)?
“Bitcoin is often viewed as a hedge or “digital gold” primarily by retail investors and participants in developing economies, where local risks such as currency instability, economic uncertainty, and limited access to developed market currencies are prevalent.
“However, Bitcoin has been classified as a high-risk asset for institutional investors. And medium- and long-term price trends are primarily influenced by institutional sentiment. This explains Bitcoin’s current bearish market environment, which is driven by a broader risk-off attitude among institutional participants despite the latest rebound.”
YouHodlers Ruslan Lienkha Discusses.
Are traditional equities and crypto moving in tandem or diverging, and what does that suggest about risk allocation strategies in current portfolios?
“Bitcoin correlates with the U.S. equity markets in the medium to long term. However, due to its higher volatility, short-term divergences are common. Cryptocurrencies represent only a tiny share of institutional portfolios, reinforcing their sensitivity to broader market sentiment.
“As such, we expect that crypto assets will continue to mirror broader financial market trends in the near future. Bitcoin may gradually evolve into an independent asset over the next 5 to 10 years, potentially establishing itself as a distinct investment class.”
Could a potential trade negotiation between the EU and the U.S. offset some of the market panic caused by the tariff rumors?
“Potential negotiations with the EU—particularly with China—may help stabilize markets and offer temporary relief. However, we may enter a medium-term cyclical bearish phase, making a swift V-shaped recovery increasingly unlikely.
“In the medium term, meaningful progress beyond tariff resolutions will be required to support the global economy. Much will depend on domestic developments within the U.S., including the risk of a potential recession. The recent tariff policy may serve more as a catalyst for an already vulnerable market—equities appeared overbought, inflation remains persistent, and debt-related concerns continue to escalate.”
What should investors watch closely this week — macroeconomic indicators, further policy announcements, or technical price levels?
“Tariffs, potential retaliatory measures, and broader concerns about a trade war are currently the main drivers of market sentiment. As a result, any related news may cause short-term fluctuations and heightened volatility across financial markets.
“Given this environment, it may be prudent to remain on the sidelines. I believe more attractive entry points for long-term investors could emerge later this year—potentially in the summer or autumn.”