Bitcoin (BTC) Acting like Safe Haven Assets, says CME Group CEO Terry Duffy
With Bitcoin appreciating in January amidst issues of global importance, its status as a safe haven asset seems to be cementing among industry experts.
Terry Duffy, the chairman, and CEO of derivatives marketplace CME Group has compared Bitcoin (BTC) to gold (XAU), indicating the growing trust of investors in the leading digital asset.
“We're seeing more and more people participate in Bitcoin,” Duffy said in an interview for CNBC's 'Closing Bell’ on Monday. “I think it’s more of safe haven, similar to a gold trade.”
Duffy made this statement in regards to the recent surge in BTC price. The CEO noted the fact that the digital currency had been hovering around $7,000 for a long time before climbing back above $9,000 last month.
Bitcoin gained over 29% in January, marking its best performance for that particular month since 2013. Analysts and market watchers pointed to several factors pushing the Bitcoin price, including the return to work after the Lunar New Year holidays in Asia and the outbreak of the coronavirus. According to industry experts, the cryptocurrency is seen as a safe-haven asset as global equity markets remain shaky amid concerns of the fast-spreading epidemic’s impact on economic growth.
In his interview for CNBC, Duffy also indicated an organic growth in the number of people entering the crypto ecosystem through CME Group’s products. The Chicago exchange launched Bitcoin options last month as it sought to “offer greater capital efficiencies and a new way to manage bitcoin exposure”.
CME Group followed the likes of rival platforms FTX and Bakkt which also recently launched Bitcoin options. The move also came “following the maturation and success of our bitcoin futures introduced in December 2017 and in response to growing customer demand for additional regulated bitcoin derivative products,” CME Group stated.