According to Allaire, recent market volatility might have been caused by people trying to make a profit following the month of growth. He notes that the “last week was a significant risk-off week for equities”, whereas before there were a lot of holders of digital assets whose broader portfolios were taking a hit.
Jeremy Allaire, CEO at cryptocurrency financial services company Circle, expressed his optimism in regards to Bitcoin (BTC) being a safe haven for investors despite recent market volatility.
On Aug. 19, Allaire voiced his sentiment during the CNBC’s Squawk Box.
“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.”
Bitcoin price surge over $10K causing volatility
Meanwhile, some profit taking is expected given Bitcoin’s impressive year thus far, according to Allaire, who notes:
“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.”
Cryptos continue to draw the world’s attention
The Circle CEO also noted that “crypto as an agenda item is absolutely on the docket.” According to him, digital assets are becoming a major global topic, and not only because of the continued growth of major coins like Bitcoin “but also the growth in stablecoins like USD Coin and Libra.”
As reported previously, senior analyst at market strategy and sector research company Fundstrat Global Advisors, Tom Lee, is also confident that BTC already became a genuine safe haven for investors.
On Aug. 8, Cointelergaph published a report about the three main reasons why investors are increasingly considering taking shelter in Bitcoin.