Crypto no substitute for equities, should be seen as diversification asset: Experts

Indian investors are diversifying portfolios amid volatile equities, but experts caution against viewing cryptocurrency as a panic-driven replacement for stocks. The Nifty 50 fell 4% over four sessions before recovering on May 14, while the rupee hit a record low of 95.9575 per dollar, pressured by crude prices and foreign outflows. Vikram Subburaj, CEO of Giottus.com, noted Bitcoin’s resilience at $79,765 but warned it remains volatile, with a 1.68% 24-hour decline and a $1.6 trillion market cap. Crypto should be treated as a high-conviction asset, not a hedge against falling stocks, Subburaj said. Ashish Singhal, Co-founder of CoinSwitch, suggested allocating 2-4% of portfolios to crypto due to its improving risk-to-reward ratio. Bitcoin’s ability to defend the $78,200–$79,100 price range and regulatory developments like the proposed CLARITY Act could boost sentiment, according to Akshat Siddhant, Lead Quant Analyst at Mudrex. Daily Bitcoin transactions surged 116% in May, signaling strong network participation. Institutional adoption and global integration of Bitcoin and Ethereum are reinforcing crypto’s role as a maturing asset class, Sumit Gupta, Co-founder of CoinDCX, noted. Investors are shifting from short-term trading to long-term holding strategies. Gupta emphasized responsible investing within regulated frameworks, urging gradual participation and prudent risk management. Experts agree crypto should complement—not replace—traditional assets. CoinDCX advises investors to prioritize education, assess risk tolerance, and stay informed as India’s digital asset ecosystem evolves. The outlook remains tied to innovation, real-world utility, and mainstream adoption, with Bitcoin’s long-term trajectory depending on macroeconomic conditions and regulatory clarity.