CME Trader Buys Bitcoin Dip at $10,000 Because It’s a ‘Genuine Dollar Hedge’

CME Trader Buys Bitcoin Dip at $10,000 Because It’s a ‘Genuine Dollar Hedge’

CME Trader Buys Bitcoin Dip at $10,000 Because It’s a ‘Genuine Dollar Hedge’

Jim Luorio, a managing director at TJM Institutional Services and a trader on CNBC’s Futures Now, believes the bitcoin dip at the $10,000 level is worth considering.

 

On CNBC’s Futures Now, Luorio said:

 

I am actually starting to see bitcoin for what it may be; and that really is a genuine dollar hedge safe haven asset, at least it has performed like that over the past six months. $10,000 seems to be a good level here. If it trades $10,850, I think it is a spot to buy.

 

Year-to-date, within about six months, the bitcoin price has increased from $4,000 to over $10,000, achieving its yearly high at $14,000 with a three-fold increase in value.

 

Is bitcoin as a safe haven asset angle viable?

In recent months, various data including the consistent inflow of institutional capital through regulated products such as Grayscale’s Bitcoin Investment Trust (GBTC) and the noticeable spike interest towards crypto assets in China has indicated that a growing number of investors may be considering the asset class as alternative safe haven assets.

 

Bitcoin, bitcoin price

Bitcoin and other cryptocurrencies are increasingly turning into a safe haven asset among Chinese investors, once again. | Source: Shutterstock

There are safer and more reliable products for investors to utilize to hedge their holdings in the likes of treasuries, bonds, cash, and gold but it is possible that intensifying geopolitical risks are encouraging investors to explore an emerging asset class in crypto assets as alternatives.