Nelson Minier, head of over-the-counter (OTC) trading at crypto exchange Kraken, says that it is too early to call bitcoin a “safe haven” asset, despite the cryptocurrency gaining popularity in that regard.
In an interview with Nasdaq TradeTalks, Minier compared the current state of bitcoin and crypto-assets trading to how Wall Street used to operate in the past.
.@Nasdaq #TradeTalks: @krakenfx is one of the Largest, Oldest #Crypto Exchanges in the World @JillMalandrino https://t.co/mDgzdXdPhU— TradeTalks (@TradeTalks) August 22, 2019
According to Minier,
Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate. I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading. It feels very much like that...there's a lot of energy and enthusiasm about this progress and where it's going.
Bitcoin has been gaining popularity as a so-called “safe haven” asset. According to the growing belief among analysts and investors, BTC is an attractive alternative to fiat and the traditional stock markets as a hedge against economic downturn.
However, Minier believes it’s too early to label bitcoin as a safe haven, given the high price volatility.
He continued,
So, I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset.
Despite calling bitcoin's safe haven status premature, Minier admitted that “we're heading that way for sure.”
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