Nicholas Colas, co-founder of DataTrek Research, said that Bitcoin is an excellent indicator of global geopolitical and economic turmoil.
In an interview with CNBC, Colas noted that bitcoin was one of the few indicators that predicted protests in Hong Kong and the subsequent outflow of capital from the region. He also emphasized that Bitcoin has become a safe asset, just like gold.
"We are definitely seeing that, and really are perked up around the Hong Kong protests and some of the currency flight that happened out of Hong Kong and the mainland, and Bitcoin was one of the few assets that we watched that actually predicted that uncertainty ahead of time. Nothing else was really moving, Bitcoin was,"said Nicholas Colas.
Recently, a similar view was expressed by the former Deutsche Bank Executive Director Peter Tchir, who also noted that Bitcoin has become one of the best indicators of tension in world geopolitics.
Colas said that despite everything, Bitcoin is a new and very volatile asset, so new large-scale market drops may occur in the future, as last year, when the price of the first cryptocurrency collapsed from $ 20,000 to $ 3,500.
Currently, the first cryptocurrency is trading at around $ 9,900, although a few hours earlier the rate was down to $ 9,500. Recently, Goldman Sachs analysts predicted that in the short term, the Bitcoin rate could rise to $ 13,900