Alex Mashinsky, principal executive officeholder (CEO) of cryptocurrency lending platform Celsius Network, thinks Bitcoin (BTC) hasn't go plenty of a non-correlated asset for investors to turn to information technology in the current fiscal crisis.

In an Apr 22 interview on the David Pakman Evidence, Mashinsky said the cryptocurrency didn't run across a significant surge at the start of the pandemic because "if you take any snippet over the last year, you would come across very high correlation [between BTC and] the stock market."

This correlation combined with the current crisis may be enough to deter many investors from Bitcoin. While Cointelegraph has reported Bitcoin was more correlated with gilt post-obit the March 12 crash rather than stocks, crypto in general still has a reputation for volatility.

"Five years ago," Mashinsky said, "BTC looked volatile against stocks" but now it "looks more stable than the stock market — it only moves two% a day, and the stock marketplace moves v–10%."

Using Netflix — the all-time-performing stock from 2022 to 2022 — every bit an example, Mashinsky highlighted the fact BTC was still "two,000 times better than the world champion of the stock market place" given the price skyrocketing in that timeframe.

Oil going negative

The CEO besides cited the recent oil crash as office of the irony surrounding Bitcoin volatility. The price of oil recently went negative for the start time as companies paid traders to take barrels off their hands. Even so, this historic crash led only to a modest fallout for BTC. As of press time, the price remains in the $7,000s.

"Oil is just the start one to hitting [due to COVID-19]" Mashinsky said, "You lot're going to run into other industries going through the same type of recycling."

What will go investors to Bitcoin?

The coronavirus pandemic has led to mass liquidations across many markets, including some crypto holders who need fast greenbacks. However, Mashinsky believes that the measures proposed to stabilize the U.S. economy — stimulus packages and other authorities spending — will ultimately get many investors to see Bitcoin as the safer gamble in a tumultuous world economy.

Every bit at that place is currently more coin in bonds than stocks, the measures used may weaken the U.S. dollar, potentially causing bondholders to reassess their needs and turn to crypto.

"A bet on Bitcoin is a bet that the deflationary pressures will win," Mashinsky said. "When everyone gets nervous, they all go to cash, that includes selling Bitcoin, but information technology's all the same one of the best stores of value that exists out there."