Chief investment strategist at BMO Capital Markets, Brian Belski, brushes off Bitcoin (BTC) calls to be a safe haven asset claiming the cryptocurrency is too volatile.
Despite the massive growth in BTC’s value in the past six months or so, Belski doesn’t buy into the asset being a safe haven asset. He references the high volatility experienced in BTC’s market in the past few years as a key factor why the asset is yet to be considered as a long term investment.
The longtime stocks favorite, threw shade on BTC as a safe haven asset in an interview with CNN Market Now show, claiming the asset only offers a “sexual appeal” to its current investors. He said,
“Bitcoin has been excessively volatile, especially the last couple of years. It’s the sexy kind of thing to go to now. I don’t base my investments on sex appeal.”
The chief investment strategist at BMO Capital further claims the asset has not matured enough for investors to claim it as a long term asset. Bitcoin, in the short decade of its life, however grew to $20,000 USD in 2017 and despite the crypto winter in 2018, the coin trades above $11,800 USD.
“I base my investment on longer-term perspective. And I think the longer-term perspective, in terms of Bitcoin being that safe haven, I think it’s way too soon to call that.” – Brian Belski, BMO Capital
Bitcoin continues to outperform most of the crypto assets on the charts, with a 1.88% increase in the past 24 hours amidst a sea of red. The pioneer cryptocurrency trades at $11,830 USD across major exchanges, representing over 200% increase since the start of the year. The S&P 500 index on the other hand year to date return stands at 15.4%.