Bitcoin (BTC) continues to receive stern warnings from traditional financial circles despite its recovery efforts in recent weeks. Council on Foreign Relations (CFR) Senior Fellow Rebecca Patterson said in an interview with Bloomberg Open Interest that Bitcoin is still a “speculative asset” and should not be viewed as a hedge against inflation or the dollar. Patterson argued that investors should clearly understand how Bitcoin will impact their portfolios before purchasing it, saying, “People say it's a store of value or a diversifier. It might be that way over time, but it still isn't today.” According to Patterson, the real risk is that the crypto market's potential for contagion to other financial sectors, a topic discussed for years, hasn't disappeared. The expert noted that the systemic impact of the FTX collapse was limited, noting that today's ecosystem has a much broader financial connection. Related News: Analysis Firm Warned: “The Recent Drop Was Unlike Any Previous Correction” - Reveals What They Expect for Bitcoin Patterson said that MicroStrategy is at a critical threshold at this point, and pointed out that MSCI will decide on January 15 whether the company will remain in the index: “This is a real risk of contagion. This uncertainty is one of the reasons why Bitcoin has fallen so sharply in recent months. If MicroStrategy remains on the index, capital flows from passive funds will continue. If it is removed, this support will disappear, potentially triggering another downward pressure on Bitcoin.” Patterson argued that the increasing involvement of traditional financial institutions and public companies in the crypto market could increase volatility. “The more cryptocurrencies grow and the more they become intertwined with the traditional system, the greater the impact of any shocks will be,” said Patterson, urging investors to closely monitor this expanding area of interaction. *This is not investment advice. Continue Reading: US Think Tank Expert Warns About Bitcoin: Reveals the Most Critical Date That Will Determine Its Fate
