Bitcoin as a Safe Haven
Jeremy Allaire, the big cheese at Circle, is putting his chips on Bitcoin as the ultimate safe haven for investors, even in a market that looks like it’s been through a blender. On an episode of CNBC’s Squawk Box, he shared his optimistic thoughts, noting that Bitcoin is becoming increasingly appealing to those seeking control over their investments.
The Appeal of Non-Sovereign Assets
When Allaire talks about Bitcoin being a non-sovereign digital asset, he’s touching on a growing perspective among investors, especially from places where capital controls are tighter than a drum. It’s what folks are dubbing the digital gold thesis. Investors from these regions are saying, “Give me something I can control,” and boy, does Bitcoin deliver!
Market Volatility: A Double-Edged Sword
Allaire wasn’t shy about addressing the recent market shake-up. He pointed out that the recent price surge over $10K had investors scrambling, making it a significant risk-off week for equities. It’s like a game of musical chairs, where everyone is trying to grab their profits before the music stops. He explained, “Last week was a prime example of profit-taking following strong growth.”
Bitcoin’s Stellar Year
Let’s talk numbers. According to Allaire, Bitcoin has been on a rollercoaster ride this year, soaring upwards of 100%-200% in just nine months. He acknowledges that when prices climb that high, people tend to hop off the ride and take some profits. It’s like when your favorite restaurant has a fantastic sale – who doesn’t want to grab some of those savings?
The Global Attention on Crypto
Allaire emphasized that crypto isn’t just a passing fad. It’s here to stay, with a growing agenda in global markets. “Crypto as an agenda item is absolutely on the docket,” he remarked. He highlighted that alongside Bitcoin’s growth, stablecoins like USD Coin and Libra are adding fuel to the fire. If you’re not paying attention to digital assets now, you’re probably missing out on the next big wave!
Tom Lee, a senior analyst at Fundstrat Global Advisors, shares the sentiment, expressing confidence that Bitcoin has indeed become a safe haven for many investors.
