Michael Novogratz, the CEO of Galaxy Digital, has recently talked about the latest price rally that Bitcoin is having.
According to him, the reason for the price rally is because the economy of the world is really unstable.
Now, he has affirmed that with China’s latest decision to lower the price of the yuan, the current BTC rally could be said to have “real legs”. The main reason for that is that it does not seem that the trade war will stop anytime soon and this affects all major traditional investments.
With the yuan over 7.0, an FX war, instability in HKG and the beginnings of capital flight, $Btc rally could have real legs.
— Michael Novogratz (@novogratz) August 5, 2019
The U. S. economy will probably be affected now that the yuan’s price has sunk to a very low place and several state-owned companies were told not to do business with the U. S. anymore. Another point that could be affecting prices is that Hong Kong is currently having a political crisis and, being an important trading center, this affects the Asian economy.
This has also affected the Japanese Yen (JPY) and gold, which are often considered to be “safe havens” from the crisis. Bitcoin, another important safe haven, has risen up by 9% today.
Anthony Pompliano, another prominent BTC investor, has affirmed that the asset is performing “as designed” during a global crisis, so he expects the price to go even higher pretty soon.
All of these factors are working together in order to create the so-called “perfect storm” for Bitcoin. Several economies are not doing so well and this causes the price of the token to be stronger mostly because investors have no choice but to invest in the only asset which has grown up 200% this year instead of the dollar.