Is Bitcoin a good hedge against global turmoil? Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, makes the case.
"Last couple of years, it's been really correlated to dollar." he said. "Weak dollar has been good for bitcoins. ... And it's been really correlated to risk markets. This year, it's steered away from the dollar because dollar's been strong, bitcoin's been up, which is a real breakage. It's gone negative on correlation to the equity markets."
Lee also added that crypto is now "positively correlated to gold" and it proved "itself this year to be a hedge against global risks.", reaching its highest level in more than six years as U.S.-China trade conflict worsened. Investors are seeking safer assets like gold, cryptocurrency and bonds as the equity market is growing more volatile. Bitcoin also jumped nearly 8% on Monday.
In response to bitcoin rallying, Lee contributed "crypto winter" being over as one of the reasons why the currency is now bullish. "I think that makes [crypto] authentic institutional source of diversification. I think that's gonna help it propel to new highs."
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