New York, NY – Renowned economist Nouriel Roubini, often dubbed "Dr. Doom" for his accurate prediction of the 2008 financial crisis, has issued a fresh warning to investors about the volatility of Bitcoin.
In an interview with Bloomberg TV, Roubini expressed deep skepticism about the cryptocurrency, stating, "Bitcoin is extremely volatile. If you care about preserving wealth rather than high volatility, stay away from this asset class." Roubini has previously referred to Bitcoin as "the mother of all bubbles."
Bitcoin's price has experienced significant fluctuations in recent weeks, reaching an all-time high of nearly $99,800 on November 22 before dipping below $90,000 on November 26. As of the latest update, it is trading around the $95,000 mark.
Roubini also expressed concerns about the potential economic impact of Donald Trump's policies, particularly the imposition of tariffs and immigration controls. He predicted that these policies could fuel inflation and drive up long-term U.S. Treasury yields.
"All previous inflationary shocks have implied higher long-term bond yields," Roubini said. "In a world of rising inflation, you lose in the stock part of your portfolio, and you lose in the bond part of your portfolio."
To mitigate the risks associated with inflation, Roubini recommends a strategy known as "curve steepening," which involves investing in bonds with longer maturities. He has launched the Atlas America Fund, an ETF designed to protect investors from the volatility of Trump's policies by investing in inflation-protected bonds, gold, REITs, and commodities.
"Trump's protectionist trade policies, even the 'mild' version, can upset the market," Roubini said, predicting increased volatility in the coming years.
Roubini's latest warnings underscore the growing concerns about the stability of the global economy and the potential risks associated with investing in cryptocurrencies and traditional assets.
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