Nicholas Colas, co-founder of market research firm DataTrek Research, claims that bitcoin is “a geopolitical turmoil indicator,” Cointelegraph reports.
Colas claimed in an interview with CNBC on 14th August that Bitcoin was one of the few assets of which the price predicted Hong Kong’s protests and the consequent local capital flight. The interviewer then asked him if bitcoin was a ‘safe haven’ asset to which he replied: “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.”
Peter Tchir, Forbes contributor and a former Executive Director at Deutsche Bank made a similar claim recently. In a recent article that Bitcoin price movements could be a potential signal of what is going behind the scenes on Chinese trade talks. He stated that BTC surged in May as United States President Donald Trump revealed that a trade deal with China was looking tenuous. Also, while admitting that there are lots of factors impacting Bitcoin price, Tchir concluded that Bitcoin’s value as a “leading indicator into behind the scenes geopolitical tensions” should not be ignored.
Colas told the CNBC interviewer that he accepted bitcoin was a new and very volatile asset and there couldn’t be any guarantees that its price wouldn’t see some big drops, as well as major surges.
Cointelegraph also reported earlier today that Bitcoin has begun trading at a premium in Hong Kong as continued political uncertainty produces a widely-reported spike in demand.