Bitcoin started a new week on a high note with its price inching closer to $10,700. During his recent appearance on CNBC’s “Squawk Box,” Circle CEO Jeremy Allaire opined on the massive BTC price drop that preceded this recovery.
According to Allaire, the bloodshed that the top coin endured last week was linked to a risk-off environment in the US equity market. According to the risk-on risk-off theory, investors tend to steer clear of risky assets when stocks take a hit.
Those Bitcoin holders, who garnered significant profits, decided to sell their bags. U.Today reminds its readers the BTC price has more than tripled in 2019, outperforming all traditional assets, such as gold, oil, and bonds.
There were a lot of holders of digital assets whose portfolios were taking a hit and if they had gains, Bitcoin is up over 100%, almost 200% over the past 9 months, it was a place to take some gains."
A hot topic
With that being said, Allaire is absolutely certain that Bitcoin can act as a safe haven given that it allows people to control their own wealth. However, politicians and regulators around the globe are concerned about the potential impact of cryptocurrencies on the global economy.
Allaire, who testified before the US Senate during a recent crypto-related hearing, believes that digital assets will be on the table during the annual G7 summit that will take place from Aug. 24 to Aug. 26.
Crypto as an agenda item is absolutely on the docket. It’s becoming a major topic not just because of the continued growth in things like bitcoin but also the growth in stablecoins like USDC & Libra."