Bitcoin Remains Attractive As A Safe Haven Asset Despite Bitcoin’s 23% Crash: Circle CEO
- The risk-off week for equities has a lot of holders of crypto assets
- A non-sovereign digital asset like bitcoin is attractive for those interested in moving the capital
- Stablecoins is becoming a “major” topic for the G-7
Despite the recent volatility of Bitcoin price that almost wiped out all the gains made in August, the flagship cryptocurrency is still “attractive as a safe haven asset,” Jeremy Allaire, Chief Executive Officer of Circle told CNBC on Monday.
The beginning of this month has been a green one as we made our way from $9,300, in late July, on the back of China’s yuan breaking an important psychological level and stock market experiencing one of the worst days of 2019.
From $12,300, the highest point of August, BTC/USD soon after went down to $9,500. But we are back to making recovery as the Bitcoin price jumps to $10,600.
This recent volatility, Allaire says could be people trying to take gains out of the market following the months of growth.
He points out how last week was a risk-off week for equities. This is why he says there were a “lot of holders” of crypto assets whose broader portfolios were taking a hit. And the fact that Bitcoin was up almost 200% in 2019, he says, “that’s a place to take some gains as well.”
Bitcoin is coming off one of its worst weeks all summer, briefly erasing its gains for August. Circle CEO Jeremy Allaire joins @SquawkCNBC to discuss the cryptocurrency market. https://t.co/MhOx9xgboF pic.twitter.com/F5LqxoQ4Pe
— CNBC (@CNBC) August 20, 2019
Stablecoins: The Major Hot Topic Of G-7
Despite this dropdown, Allaire is confident in Bitcoin’s status as a safe haven asset for a number of reasons.
“Clearly a non-sovereign digital asset like bitcoin is attractive to people who are interested in moving capital into a place where they can control it themselves. That underscores a lot of interest that’s been there over time,” Allaire said.
The capital flight has been seen in Hong Kong where the protests are going on strong. They even took a new non-violent route, withdrawing cash from ATMs and banks in mass.
“It’s the digital gold thesis and I think a lot of both institutional accumulators of bitcoin, individuals, very specifically individuals in jurisdictions or environments where the intense concern about capital controls are there. That’s an underlying thesis that I think has had an impact on it for the last 8 years,” he added.
Allaire further talked about the current hot topic in the cryptocurrency market ‘stablecoins.’ These fiat currency backed crypto assets he said is becoming a “major” topic for the G-7.
Though crypto as an agenda is already on the docket because of the growth Bitcoin continues to see, the growth in stablecoins like Facebook’s Libra and the recent project dubbed “Venus” announced by Binance are further bringing increased attention from the authorities.