Peter Boockvar, the chief investment officer at the Bleakley Advisory Group, has recently stated bitcoin may be a good hideout for investors, as it allows investors to gauge market sentiment. Whether it’s a safe haven, he doesn’t know.
During an interview with CNBC, he noted that he watches bitcoin as a “signal, as an indicator,” not because he wants to own it as he’d rather “own gold as an alternative currency.” Per Boockvar, bitcoin’s recent rise said something about the market’s recent turmoil and could presumably be an indication gold would rally soon after.
Over the last couple of weeks, we’ve seen this sharp rise in bitcoin and to me that was saying something in terms of what markets were thinking, about what the Fed was going to do, the turmoil created by the threatened tariffs.
As CryptoGlobe covered bitcoin has recently hit $9,000 for a short period, before dropping 10% in under six hours. Overall, the cryptocurrency ecosystem’s value surged by 70% in May, at a time in which a potential escalation of the China-U.S. trade war has been scaring investors.
Boockvar, however, noted he would recommend investors buy gold and silver, and wouldn’t recommend buying bitcoin as he doesn’t “really care for it in terms of an asset.” He added he does “care for it as a signaling mechanism that I was a tip-off to this bounce in gold.”
When asked whether he believes bitcoin can be seen as a safe haven for investors, the analyst revealed he doesn’t know as the flagship cryptocurrency is still in its infancy, and he merely noticed bitcoin’s move was seemingly related to that of gold.
Either way, he said, he’s still rather own gold. Notably, Boockvar predicted in January of 2018, when the flagship cryptocurrency was close to its all-time high, that its price could drop by as much as 90%. In 2018, BTC’s price fell to a $3,200 low in December, before starting to recover, and is currently trading at $7,770.
The Bitcoin ecosystem has seen various developments so far this year, including BTC’s mining difficulty reaching a new all-time high, suggesting miners are invested in the cryptocurrency. A ‘real usage’ indicator has, in fact, suggested bitcoin’s usage is growing faster than its price.