Bitcoin doesn't care who wins the US election — it will rise in value regardless of the outcome, a cryptocurrency fund chief says
Bitcoinwill rise in value no matter who wins the US election, according to Jeff Dorman, chief investment officerat cryptocurrency hedge fund Arca.
- A string of positive headlines for Bitcoin last week have lowered the fear-factor for investors to enter the digital market, Dorman told Business Insider in an interview.
- "Most conservative people on Wall Street don't want to be the first and don't want to be the last," he said. "Once there's that precedence set, I think it opens the floodgates for everyone else."
- While there's no specific presidential candidate who will make a difference to Bitcoin,
Joe Bidenmight be more favorable for the cryptocurrency in the long term, he said.
Bitcoin and other risk assets are not reliant on who wins the US elections, as they will shrug off market uncertainty regardless of the outcome, according to Jeff Dorman, chief investment officer, at cryptocurrency hedge fund Arca.
"They just want to know that there's a winner," Dorman told Business Insider in an interview on Thursday.He said while a majority of investors expect a hung election, or one in which neither party has an overall majority, it doesn't matter who wins because all risk assets will see a huge rise.
Bitcoin has surged more than 4% this week to $13,282 as of Friday, and is up 80% year-to-date, putting the digital currency within proximity to its June 2019 high of $13,880.Read more: 'We are in a depression': A 35-year market vet says more stimulus will be powerless to prevent a coronavirus-induced economic meltdown— and warns stocks 'have a lot further to fall'
It benefited from a stream of supportive headlines last week. PayPal said it would enable users to buy, sell, and transfer Bitcoin, investor Paul Tudor Jones called it the "best inflation trade," and fintech firms including Square, Microstrategy, and UK fintech Mode disclosed that they had bought Bitcoin as part of their cash reserves.Dorman, who has been in the asset management business for 17 years, said a billionaire investor like Tudor Jones investing in Bitcoin won't necessarily ignite a bull market, but it has lowered the fear factor of entering the digital asset market. "Most conservative people on Wall Street don't want to be the first and don't want to be the last," he said. "Once there's that precedent set, I think it opens the floodgates for everyone else. I don't think that alone is enough to start a bull cycle, but I think it is enough to increase the total addressable market of demand for Bitcoin."
Read more: 'I'm basically going to be long growth': Billionaire investor Chamath Palihapitiya has hauled in a 997% return since 2011. He details the 5 sectors shaping his long-term investment playbook.
Dorman, who calls himself a Bitcoin bull, said fintech firms are disrupting the traditional
Dorman does not think Bitcoin is a safe-haven alternative to the US dollar, but said it could provide a hedge against inflation.
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