Hong Kong demonstrations and the major global uncertainty have only made bitcoin’s status as a safe-haven much stronger than it was before according to the Circle CEO Jeremy Allaire after he spoke in an interview which we are reading more about in the latest cryptocurrency news below.
Allaire pointed out during the interview that the investors are very much attracted by the non-sovereign digital assets and mainly Bitcoin since the safe-haven status of the coin is now more important than ever. Only last week, Bitcoin broke below the $10,000 price point and then again on Friday. The coin hit the weekly low on August 15th and reached up to $9,685 but it bounced back quickly and is currently trading at $10,712. Allaire explained that the recent decline in the market could be driven by holders who decided to take profit and he even stated:
‘’Last week was a significant risk off week for equities. There were a lot of holders of digital assets whose portfolios were taking a hit and if they had gains, Bitcoin is up over 100%, almost 200% over the past 9 months, it was a place to take some gains.’’
The correction, however, does not affect bitcoin’s appeal as a method of preserving value. Bitcoin’s price has previously been pushed by multiple economic and geopolitical factors including the Hong Kong demonstrations and the China-US trade war. The heads of the G7 countries will soon meet in France and will talk about bitcoin and the entire crypto space according to Allaire. It is unlikely that there will be a crypto-related policy as he pointed out:
‘’I don’t know that we’re going to see specific policy but certainly we’re going to hear some perspective out of there.’’
As it turns out, most of the investor’s don’t recommend investing in bitcoin or even consider it as a safe haven asset but gold, for example, might not be the best investment choice despite the uncertainty in the global markets. The portfolio manager of Valley Forge Capital Management stated in an interview as well as we read in the altcoin news previously:
‘’They [Bitcoin and gold] are collectibles. You are actually not buying any protection, you’re simply speculating. To me, it’s no different than any other speculative activity in your life.’’
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