SocGen says bitcoin’s place in a portfolio ‘remains highly contested,’ gold is a better stabilizer

SocGen says bitcoin’s place in a portfolio ‘remains highly contested,’ gold is a better stabilizer

After recent plunge and subsequent partial recovery, analysts at Societe Generale argued in a recent note that questions remain around the cryptocurrency's place in investment portfolios. "It comes as no surprise that the place of Bitcoin in any investment portfolio remains highly contested, precisely because of its erratic price movements," Societe Generale's Alain Bokobza and Arthur Van Slooten wrote in a Thursday note. On Wednesday, , before paring some of those losses. Other cryptocurrencies were not spared as the overall value of the crypto market dropped by hundreds of billions of dollars in a single day. Bitcoin later recovered to hover around the . Bokobza and Van Slooten argued that the risks to bitcoin "remain on the downside," citing factors such as potential regulation ahead, which the two characterized as the "biggest threat" looming for the cryptocurrency. The U.S. Treasury Department on Thursday announced that it's . China has already been . The analysts also noted the influence of "confusing" communications from electric vehicle maker Tesla. The company previously said it would before CEO tweeted last week that the over environmental concerns. Gold: The better portfolio stabilizer The analysts also questioned the comparisons often made between gold and bitcoin due