Bitcoin May Be Safer Than Stocks Right Now, Says Investment Firm

A major investment company thinks Bitcoin might be a safer bet than stocks right now - but not for the reasons you might think.

Bitwise, a company that manages investments, says Bitcoin has already taken its lumps and adjusted to tough economic conditions. Meanwhile, stocks (shares of companies you can buy) might still have further to fall.

Here's what's happening:

• Oil and gas prices are shooting up due to conflicts in the Middle East • Higher energy costs mean everything gets more expensive (inflation) • When inflation rises, the Federal Reserve (America's central bank) usually keeps interest rates high • High interest rates make it harder for businesses to grow and borrow money

Bitcoin has already dropped about 24% this year, falling from its highs to around $67,000. The stock market, measured by the S&P 500 (an index tracking 500 big U.S. companies), has only recently started falling - down about 8% in the past month.

Luke Deans from Bitwise explained: "Energy prices remain closely linked to inflation expectations." In simple terms, when gas costs more at the pump, everything else tends to get more expensive too.

The key takeaway: Bitcoin may have already "priced in" (adjusted for) the bad news, while stocks might still be catching up to reality. This doesn't mean Bitcoin will go up - it just might not fall as much as stocks from here.

Of course, both Bitcoin and stocks remain risky investments that can lose value quickly. This analysis is just one company's opinion about what might happen next.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/markets/2026/03/28/why-bitcoin-s-compressed-valuation-offers-reduced-downside-risk-versus-stocks