"Trump Tariffs Will Fuel Inflation"
"Bet on Rising Long-Term Bond Yields"
Professor Nouriel Roubini of New York University, known on Wall Street as 'Dr. Doom,' has advised caution when investing in Bitcoin, the leading cryptocurrency.
According to Bloomberg on the 28th (local time), Professor Roubini appeared on Bloomberg TV the previous day and stated, "Bitcoin is highly volatile," adding, "If you want to preserve your assets rather than endure high volatility, it is better to stay away from this type of asset."
Nicknamed Dr. Doom for predicting the 2008 global financial crisis, Professor Roubini is considered one of Wall Street's most prominent Bitcoin skeptics. He is also famous for referring to Bitcoin as "the mother of all bubbles."
Professor Roubini emphasized that the tariff and immigration policies promoted by then-President-elect Donald Trump would fuel inflation in the United States, stating, "In a world of rising inflation, you will experience losses not only in stocks within your portfolio but also in bonds." He further recommended an investment alternative that combines assets that perform well even during high inflation, suggesting a 'curve steepener' investment that profits when the yield spread between long-term and short-term U.S. Treasury bonds widens.
As Professor Roubini pointed out, Bitcoin has recently exhibited high volatility. On the 22nd, Bitcoin surged to an all-time high near $99,800, approaching the $100,000 mark, but then declined over four days to the low $90,000 range. It later recovered to around $97,000 due to renewed buying interest and was trading at approximately $95,570 per coin as of 8 p.m. Eastern Time on the same day.
With pro-coin President-elect Trump returning to the White House, the cryptocurrency industry is envisioning a rosy future. According to data compiled by Bloomberg, approximately $6.9 billion (about 10 trillion KRW) has flowed into Bitcoin spot exchange-traded funds (ETFs) since Trump's election victory. The total assets of the 12 Bitcoin spot ETFs listed in New York amount to about $100 billion (approximately 139 trillion KRW).
Alex Sohn, Head of Research at Galaxy Digital LP, assessed, "Once some leverage is exhausted and short-term buyers finish taking profits, Bitcoin is likely to establish a strong support base and attempt to break through the $100,000 mark again."
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