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Why is Bitcoin sometimes seen as risky and sometimes as a hedge?

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Answer: Its role changes with liquidity and investor narratives

Its role changes with liquidity and investor narrativesCorrect! Bitcoin is often interpreted through changing market conditions. In risk-on periods many treat it like a high-volatility asset, while in some stress periods others discuss it as an alternative hedge.

It becomes a different technology every few monthsWrong. Bitcoin does not become a different technology every few months. What changes faster is the story investors tell about it.

It always moves opposite to stocksWrong. Bitcoin does not always move opposite to stocks. Its relationship with other assets can vary across market regimes.

Go deeper: Hedge (finance)
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