The CEO of the Circle financial services firm based in Boston, Jeremy Allaire has just expressed his optimism in regards to Bitcoin being a safe haven for investors despite the lack of stability in the market over the past few weeks.
Yesterday, 19th August, Allaire voiced his thoughts during the Squawk Box segment on CNBC.
"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. 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 eight years."
Allaire said that the recent volatility in the market could have been caused by people trying to make a profit following the bullish month which saw crypto grow. He highlights that the "last week was a significant risk-off week for equities,” however before there were a lot of HODlers of cryptocurrencies whose broader portfolios were taking the brunt of it all.
On the other hand, some profit-taking is expected given that Bitcoin has experienced an impressive year in 2019. Allaire goes onto note.
“Obviously, Bitcoin is up over 100%, almost 200% over the past 9 months or so, that’s a place to take some gains as well. Depending on the type of holder, so to speak, you’re going to see slightly different behaviors during these market moves."
The rise in the price of cryptocurrencies has been often accompanied by an increase of general interest by big institutional investors. At the end of 2017, we saw a lot more people enter the market who probably never had even heard of cryptocurrency and get involved with the space.
The businessman went to say that as an agenda, crypto is “absolutely on the docket.” According to him, virtual currencies are becoming a big deal on a global scale, and not only because of the ever-growing value of big coins like Bitcoin “but also the growth in stablecoins like USD Coin and Libra."