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.
Too Early for Save Haven Status
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.”