Circle CEO Jeremy Allaire talked on Monday (August 19) talked about Bitcoin's recent price action and whether Bitcoin can be considered a safe haven asset.
The Circle CEO's comments during an interview on CNBC's "pre-market morning news and talk program "Squawk Box", where he was asked questions by Andrew Ross Sorkin and Joe Kernen, at a time when Bitcoin was trading at $10,702.
Sorkin started the interview by asking Allaire for an explanation of Bitcoin's price action over the past two weeks. Allaire replied:
"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 like the underlying thesis and I think that has had an impact on it for the last 8 years."
Next, Sorkin asked Allaire if we should be thinking that money moved out of China (due to the recent political unrest in Hong Kong) into Bitcoin or whether the price of Bitcoin went up because people are speculating that the price of Bitcoin will increase in similar situations in the future.
"Yeah, I think likely it's a mixture of both, and obviously it's not something you can clearly measure at any given time... Last week was a significant risk-off week for equities. You saw there were a lot of holders of digital assets whose broader portfolios were taking a hit and if they had gains, 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."
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