Analyst Dave Chapman has argued that bitcoin can be a safe haven against economic uncertainty and that few assets have performed as well as BTC so far this year.
Chapman, who is the executive director for Hong Kong-based BC Technology Group Ltd., told CNBC in an interview that bitcoin should be considered a safe haven asset despite its recent drop in price.
He said,
I think bitcoin can be considered a safe haven, relatively speaking. Despite the current macro environment and the pandemonium that has kickstarted 2020 bitcoin is still up 23% year to date.
He continued, adding there are “very few investments that have performed equally as great as bitcoin this year or frankly others.” Chapman said the two most common questions he receives from investors concern bitcoin’s status as a safe haven asset and whether the price is uncorrelated to other asset classes.
He told CNBC,
If you look at what’s happening with bitcoin at times of political unrest and economic uncertainty, at times bitcoin does appreciate…if you look at what’s happening in US equities today, US equities are down 5% to 10% where bitcoin is up 2%. I think personally that’s quite telling.
Chapman also highlighted the changing attitude towards bitcoin from JPMorgan and other Wall Street entities as a positive sign for the industry.
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