Over the course of last few days, Bitcoin’s price has shown a dramatic increase from the lows of 9000-level. The surge has left many Bitcoin critics scratching their heads, as they wonder what’s driving the price of BTC at the moment. Now Circle CEO Jeremy Allaire has given them an unusual answer. According to him, Bitcoin is surging because global equity markets are going through a rough phase, which proves that it has become a new safe haven after gold for investors and traders.
Jeremy was speaking to CNBC at an interview held yesterday. During the interview, he said that BTC has become a really attractive asset in the times of financial upheaval due to its robust capability to act as both a store of value and an asset. His comments echoed what has been said on the subject by Binance Research, the market research arm of Binance cryptocurrency exchange. Binance research had recently said that the ongoing rise in the prices of Bitcoin is driven by the trade war of United States and China. And since that war is now heating up after China devalued its currency to historic lows on Monday, we can expect BTC to move further and further in the weeks to come.
Allaire also said that the possibility of US-China trade war getting worse in the days to come is quite high. Rising nationalism, increasing currency conflicts and trade-wars – all are good factors to support a non-sovereign, highly secure and decentralized store of value. When asked specifically if US market sell-off is fueled by Chinese investors flooding into Bitcoin, he said that it’s quite possible because despite China’s ban on crypto there is a lot of crypto activity in China through offshore platforms.
Gold lovers, however, are not agreed. Here’s what Peter Schiff had to say about Jeremy’s interview to CNBC:
CNBC is trying its best to dupe its audience into buying Bitcoin. Despite gold being a much larger market, CNBC devotes far more airtime to Bitcoin. The Chinese aren't buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!
— Peter Schiff (@PeterSchiff) August 5, 2019
Jeremy also said that China is likely to soften its stance on crypto in the coming days as it looks forward to launching its own global cryptocurrency. Facebook’s announcement of Libra has made them pull the trigger, and they are no mobilizing to launch a new global cryptocurrency. However, Bitcoin is more likely to win the crypto game due to its strong fundamentals, he believes. You can watch the full interview below:
It’s worth noting that Circle CEO is a permabull of Bitcoin. His belief in BTC hadn’t shattered even during the brutal bear phase of November – December last year. So now when BTC is going up, it’s obvious that he is ecstatic.