Bitcoin Recognized as Top Hedge Against Tech Market Exposure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: Fool
- Bitcoin's Uniqueness: According to a March 2024 study by WisdomTree, Bitcoin (BTC) maintained a correlation with the stock market between 0.2 and -0.1 from 2012 to 2023, showcasing its value as 'digital gold' that can perform independently during asset fluctuations, thus providing effective risk hedging for investors.
- Potential of Gold Stablecoins: The largest gold stablecoins, Pax Gold (PAXG) and Tether Gold (XAUT), both exceeding $1.6 billion in market cap, demonstrated strong performance as gold prices surged nearly 70% in 2025, highlighting their hedging capabilities during stock market downturns.
- Independence of Small Privacy Coins: While no cryptocurrencies are fully negatively correlated with tech stocks, niche privacy coins like Zcash (ZEC) and Monero (XMR) have gained attention due to online privacy concerns, with their price behavior driven more by tech upgrades and market demand, presenting unique investment opportunities.
- Attractiveness of Bitcoin Investment: Bitcoin is favored by billionaire hedge fund managers as the top choice due to its historical low correlation with major asset classes, making it an ideal tool for hedging against tech market risks, prompting investors to reassess the investment thesis of 'Bitcoin as digital gold.'
Analyst Views on WT
Wall Street analysts forecast WT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WT is 14.75 USD with a low forecast of 13.25 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 13.150
Low
13.25
Averages
14.75
High
16.00
Current: 13.150
Low
13.25
Averages
14.75
High
16.00
About WT
WisdomTree, Inc. is a global financial company. The Company is engaged in offering a diversified suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. The Company is focused on offering digital products and services related to tokenizing real world assets and stablecoins, as well as its blockchain-native digital wallet, WisdomTree Prime and institutional platform, WisdomTree Connect. WisdomTree Prime provides direct-to-consumer access to digital assets, including bitcoin, ether, tokenized gold, United States dollar tokens and 13 Digital Funds, while also enabling spending functionality through a co-branded debit card. The WisdomTree Connect platform offers businesses and institutional users direct access to its Digital Funds using their own self-hosted wallet or a third-party custodial wallet service. The Company also operates in private asset markets, through Ceres Partners, which specializes in farmland investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
