As economic uncertainties loom over traditional financial markets, the intersection of crypto and traditional finance is becoming more crucial than ever.

Roundtable anchor, Rob Nelson, recently led a discussion featuring Jon Najarian, Co-Founder at Market Rebellion, and David Gokhshtein, Founder and Executive Chairman of Gokhshtein Media, where they explored this dynamic. While Najarian highlighted the Federal Reserve's role and the potential warning signs of a recession, Gokhshtein emphasized bitcoin's historical role as a hedge against financial instability. Recently, however, it appears that role might be breaking down.

Nelson kicked off the conversation by probing Najarian on the possible convergence between traditional finance and crypto markets. This year, bitcoin has usually sold off along with stocks whenever vocality has struck the market. Perhaps that shouldn't be surprising as Wall Street giants embrace Bitcoin via ETFs.

Najarian pointed out that the Federal Reserve's transparency has evolved, with more vocal members than in the past. However, this hasn't quelled recession fears, especially with the yield curve inversion — often a harbinger of recession. "The panic now is that when we saw the two-year versus 10-year invert as it did... that's supposed to signal that a recession is a possibility," Najarian noted.

He also underscored the market's current jitters, particularly with the yield on the 10-year Treasury bond dropping below 3.7%, also signaling a potential recession. Najarian believes that the less yield available, the better it could be for bitcoin, as investors might seek refuge in digital assets amid declining confidence in traditional markets.

Nelson then shifted the discussion to whether the U.S. is indeed headed for a recession. Najarian expressed uncertainty but stressed that any downturn might not be directly caused by the Fed. Instead, he argued, the prolonged yield curve inversion indicates deep-rooted concerns about the economy, concerns that are only now getting the attention they deserve.

Turning to Gokhshtein, Nelson explored the idea of bitcoin as a hedge against traditional financial turmoil. Gokhshtein echoed the thesis from notable investor Cathie Wood — that investors should consider bitcoin as a portfolio hedge, especially if economic conditions worsen. He argued that as traditional markets become more volatile, the role of digital assets like bitcoin could become increasingly appealing.