Bitcoin Price Predicted Hong Kong Turmoil, Used as Safe Haven, Analyst Says

Nicholas Colas, a 30-year Wall Street analyst and co-founder of DataTrek Research, believes that bitcoin now has a nascent role as a safe haven asset. In line with several other observers on the financial sector, Colas cites recent events and the macroeconomic situation as reasons for his assessment.

First, he says, it's kind of coming back to where it started. Linking the state of the Worlds finances now to those of just over a decade ago, when bitcoin first came into being, he illuminated his point while speaking at CNBC by adding that it started in Jan 2009, during the financial crisis, and it really was born or that kind of turmoil.

Secondly, he expanded, it's only grown since then, and is obviously very global. So it's not just a US safe haven, but a really global and convenient safe haven. The final piece of his analysis referred to bitcoins continued dominance of the crypto space, both in the public eye - where it is something of a synonym for cryptocurrency as a whole - and in terms of Market Capitalisation.

Over the last year, year and a half, bitcoin has become sort of the standard of all crypto. A year ago Bitcoins Market Cap was only half of all the crypto out there. Now it's over two- thirds: 67%. So it's also that all the scammy coins that were out there a couple years ago, have kind of died and Bitcoins the one left standing.

This statistic, cited as 'dominance in cryptocurrency circles, has seen bitcoins share of the market for crypto as a whole oscillate from 80% at the beginning of 2017, to 33% in Jan 2018 before rising up from just over 50% to where it stands today during the course of 2019.

Yesterday we reported on similar sentiments from CNBC analyst Brian Kelly, who asserted that BTC was being used as a currency hedge, but through sure speculation.

While Kelly supported a buy signal being put out by Goldman Sachs analysts, he believed that the current perfect macroeconomic storm of multiple stumbling global currencies and increased institutional interest that is pushing Bitcoins price upwards was balanced out on the negative side by a stagnation in the number of new wallets. This, he said, indicated that the lead digital asset was being used as a safe haven option by macro players and other investors.

By contrast, Colas pointed to recent events in Hong Kong as an indicator of how he increasingly sees Bitcoins growing role in world finance as a predictor of turmoil. Per his words bitcoin "really perked up around the Hong Kong protests.. bitcoin was one of the few assets we watched that actually predicted that uncertainty ahead of time, nothing else was really moving. bitcoin was."

With these assets, we look at percentage change" he continued.

So when you saw a 5-10-15% change in Bitcoin over a week, that was a flashing signal that something was going to happen, we just didn't know what - it ended up being Hong Kong. Well look now for a pull-back, to confirm the notion that [because of] trade talks in Hong Kong, tensions ...

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Tags: Bitcoin, Hong Kong, Colas Group, DataTrek Research, Financial services, Wall Street, CNBC, Market capitalization, Sanctuary, Brian Kelly