People Are ‘Using Bitcoin Like They’re Using Gold’ as a Safe Haven, Says CME's CEO

Francisco Memoria

Terry Duffy, the CEO of the CME Group, has revealed during an interview he believes people are now “using bitcoin a lot like they’re using gold” as a safe haven asset.

During the interview for CNBC’s ‘Closing Bell’, Duffy compared the flagship cryptocurrency to the precious metal, which has been considered a safe haven for thousands of years, as BTC’s price has been rising while equity markets are shaken.

We're seeing more and more people participate in bitcoin … I think it’s more of safe haven, similar to a gold trade.

Duffy’s words came in response to a question regarding bitcoin’s price performance so far this year, as the cryptocurrency rose over 30% in January, its best performance in the first month of the year since 2013. Various analysts believe bitcoin’s price went up because of the outbreak of the coronavirus, which shook markets over its potential impact on economic growth.

As CryptoGlobe reported, the CME launched its options on bitcoin futures earlier this year, and traded a total of 55 options contracts during the debut session, equivalent to around $2.33 million. At the time Tim McCourt, global head of equity index products at the CME, noted it “takes time to grow any new market.”

Addressing the CME’s Bitcoin-related offerings, Duffy indicated there was organic growth in them, while adding the cryptocurrency ecosystem as a whole has been growing. Bloomberg analyst Mike McGlone has in the past said CME’s options on bitcoin futures are a “significant step in the direction of increasing exposure to bitcoin.”

McGlone, it’s worth noting, wrote in a report earlier that he believes bitcoin is “winning the adoption race” against other cryptocurrencies, adding he believes we could see its price rise this year.

Featured image by Roy Buri on Pixabay