- Jeremy Allaire believes that Bitcoin movements are related to Yuan devaluation.
- Bitcoin and gold correlation is growing, according to recent research.
The CEO of cryptocurrency company Circle, Jeremy Allaire, believes that Bitcoin has become a protective asset that can be used to hedge against political instability and global economy risks. This view is shared by some other prominent figures of the industry.
He is convinced that the rampant nationalism, as well as currency and trade wars, will strengthen the position of the digital stores of value.
“We have been seeing, from my vantage point, a softening in the Chinese stance towards crypto,” he said speaking with CNBC.
Allaire did not clarify if the recent Bitcoin growth was caused by the inflow of the Chinese capital or triggered by mere expectations of such development. Currently, it is hard to understand if investors really use Bitcoin as a safe-haven along with gold and other protective assets, or simply speculate on the protective potential of the digital asset.
Nevertheless, the head of Circle pointed out that the Chinese are actively involved in cryptocurrency trading, despite all sorts of bans and restrictions implemented by the country” authorities.
Notably, Bloomberg economists pointed out the growing correlation between gold and Bitcoin, which is also supportive of the above view.
“The correlation between Bitcoin and gold over the past year is 0.496. In the past three months, that shot up to 0.827,” they said.
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