According to the co-founder of DataTrek Research, current global instability is making Bitcoin a popular choice of safe-haven asset. Nicolas Colas believes that the leading crypto asset’s price swings can be used as an indicator for other markets and global events.
He also argues that Bitcoin’s relative immaturity compared with traditional asset classes will mean that the volatility that has become synonymous with crypto assets looks set to continue.
Cole: Bitcoin’s Rising Dominance Makes it the “Standard of All Crypto”
Appearing in a CNBC interview earlier today, the co-founder of financial research and analysis firm DataTrek Research states that Bitcoin is serving as a convenient vehicle for capital flight out of turbulent economies.
Nicolas Cole argues that the current global economic picture is starting to resemble that of 2008-09 when Bitcoin was created. It was born in “turmoil”, he reasons.
The researcher goes on to comment on the global nature of the crypto asset and that its convenience may make it a more attractive safe-haven than other options.
Turning his attention to rising Bitcoin dominance versus the rest of the crypto market, Cole states:
“Over the last year or year-and-a-half Bitcoin has become the standard of all crypto.”
The leading digital asset has steadily been climbing in relation to other cryptocurrencies since it reached a market dominance low in 2018. From just one-third of the total market at the start of last year, Bitcoin now represents 67 percent of the all crypto coins’ market capitalisation combined.