Jeremy Allaire, the CEO of Circle, considers that there is a macro correlation between Bitcoin and the current uncertainty in the global economy. He said that during an interview with CNBC on August 5. This comes after a massive devaluation of the Chinese yuan that touched its lowest point in 11 years.
Jeremy Allaire Talks About Bitcoin
The world is currently experiencing difficult times. The United States and China, the two largest economies in the world, are in the middle of a trade war that is affecting worldwide economic and financial stability.
At the same time, the Eurozone is experiencing growth issues, low inflation rates and political instability in some countries. This has pushed the European Central Bank (ECB) to increase the monetary stimulus on the economy. Moreover, despite a strong economy, the U.S. Federal Reserve decided to also lower interest rates to help the economy remain strong.
Allaire commented about the whole macro-situation:
“You can very clearly see some macro correlation there. I think the broader theme of, you know, Bitcoin specifically, crypto more broadly participating in these global macro forces is becoming more and more clear.”
He went on saying that rising nationalism, rising amounts of currency conflict and trade wars are just some of the examples that are pushing individuals towards a non-sovereign and highly secure store of value.
One of the questions he received was related to whether the price increase experienced by Bitcoin is due to Chinese investors purchasing the digital currency. On the matter, he explained that the Bank of China has recently released an infographic related to Bitcoin basics, what is it and how China recognized it as property.
Huobi, one of the largest exchanges in the market, has also created a new Communist Party branch that has closer ties with the local Chinese government. In China, it is not possible to purchase Bitcoin through traditional spot exchanges as in most of the countries around the world.
A few hours ago, Bitcoin surged above $11,000 after three weeks being traded under that level. At the same time, other digital currencies followed behind. However, Bitcoin is currently the best performing digital asset among the top 50 cryptocurrencies in the market. Litecoin (LTC) has also experienced a halving earlier today that allowed the virtual currency to surge above $100 as well. At the time of writing, Bitcoin is being traded around $11,800 and it has a market capitalization above $210 billion.
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