The escalating US-China trade war and the increasing treatment of cryptocurrencies as a so-called safe haven asset will drive the Bitcoin price up to £15,000 in a matter of weeks, according to the CEO of a leading independent financial advisory organisation.
Nigel Green, chief executive and founder of the deVere Group, has argued that investors are increasingly seeing cryptocurrencies as a safe alternative to traditional stocks and shares in times of crisis. This means that as uncertainty fuelled by trade war concerns grows, Bitcoin in particular is attracting increasing numbers of investors.
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“Cryptocurrencies are now almost universally regarded as the future of money – but what has become clear this week is that they are increasingly regarded a safe haven in the present,” he said.
This, he argues, is set to drive the Bitcoin price up to $15,000. At the time of writing it sits at around $12,200, having climbed from around $10,400 in the last five days.
“The legitimate risks posed by the continuing trade dispute, China’s currency devaluation and other geopolitical issues, such as Brexit and its far-reaching associated challenges, will lead an increasing number of institutional and retail investors to diversify their portfolios and hedge against those risks by investing in crypto assets,” he said.
“This will drive the price of Bitcoin and other cryptocurrencies higher. Under the current circumstances, I believe the Bitcoin price could hit $15,000 within weeks.”
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By GlobalDataOn the road to $15,000, the Bitcoin price has already been impact by trade war maneuverings
Recent battles in the ongoing trade war have already been reflected in traditional currency exchanges.
Most recently, this saw the Chinese renminbi fall below 7 to the US dollar yesterday, its lowest point in a decade. This prompted shockwaves throughout wider markets, driving down stock prices and currency values in emerging markets.
However, Bitcoin reacted differently.
“The world’s largest cryptocurrency, Bitcoin, jumped 10% as global stocks were rocked by the devaluation of China’s yuan as the trade war with the US intensifies,” Green said.
“This is not a coincidence. It reveals that consensus is growing that Bitcoin is becoming a flight-to-safety asset during times of market uncertainty.”
In this sense, Green sees Bitcoin increasingly becoming the new gold – a safe haven asset that investors flock to in times of uncertainty.
“Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin, which shares its key characteristics of being a store of value and scarcity, could potentially dethrone gold in the future as the world becomes increasingly digitalised.”
For now, he anticipates continuing uncertainties to keep drawing investors to Bitcoin, ultimately driving its price beyond the $15,000 mark.
“With the Trump administration now officially labelling China a currency manipulator, escalating the tensions between the world’s two largest currencies economies, investors are set to continue to pile in to decentralised, non-sovereign, secure currencies, such as Bitcoin to protect them from the turmoil taking place in traditional markets.”
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