Eric Balchunas Defends Bitcoin's Crash With Stocks, Calling It a Transitioning Asset

Eric Balchunas, -’s senior ETF analyst, has dispelled claims that Bitcoin, as a store of value, should not react negatively to the recent US stock crash.

Recently, there has been a discussion about Bitcoin's role as a store of value in the face of the recent US stock crash.

Rising Tariffs Impact US Stock Market

Concerns around the looming tariff war between major countries, like the United States, Canada, and China, are impacting the global stock market.

Particularly, the US stock market has been on the wrong side of the trade war, recording its highest daily decline in 30 months, with over $1 trillion wiped out on Monday.

While the S&P 500, Dow Jones, and Nasdaq crashed, Bitcoin followed suit. On Tuesday, the asset dumped below $80,000 for the first time since early November amid pessimistic macroeconomics and incessant outflows from US Bitcoin ETFs.

Now, as the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell to their lowest levels since December 2024, Balchunas shared his thoughts on a statement by ETF Trends president Nate Geraci.

Recently, Geraci shared his opinion on Bitcoin's reaction to the US stock crash. He branded the scenario a "showtime" for the premier asset, insinuating that it should stand out as a hedge against the crash.

"If Bitcoin is the ‘store of value’ or ‘hedge’ that people keep saying it is, then it should be doing it now. BTC shouldn’t be acting like a high-beta asset in a period of US stock sell-offs," Geraci suggested.

However, Balchunas defended Bitcoin's crash with stocks. He stressed that its hedge was against inflation and not against stock declines. Moreover, the market expert highlighted that nothing has really withstood the decline, including the US Treasury bonds.

It isn’t a hedge against stock declines (what really is? Even treasuries aren’t that great at this) but rather a hedge against the global money printing, no? At least that’s how I would positioned it.

— Eric Balchunas (@EricBalchunas) March 12, 2025

As a result, he maintains that expecting Bitcoin to act as a store of value against this US stock crash was a bit out of place, at least in his own view of the pioneering cryptocurrency.

Bitcoin Still Transitioning to a Serious Asset Class

Moreover, enthusiasts weighed in on the argument, with some insisting that expecting Bitcoin to act as a hedge against market conditions is somewhat too early to ask of the asset.

One reaction highlighted that Bitcoin is still transitioning from once a highly speculative coin to a maturing asset class. As a result of this, it is still early to expect complete protection against stock crashes from the relatively new investment vehicle.

Another reaction supported this line of thought, insisting that investors need to first experience a paradigm shift from their current view of Bitcoin as a speculative asset. Furthermore, he noted that Bitcoin must be worth at least millions per coin and gain mainstream adoption to attain stability like gold.

Meanwhile, data has shown that Bitcoin has shown more resilience in the face of geopolitical tensions than gold and the S&P 500. A chart shows the asset’s price performance during major global events compared to both traditional asset classes.

Bitcoin's Reaction to Major Geopolitical Events

In the meantime, Bitcoin trades at $82,783, up 2.66% in the past 24 hours.