Coin Share’s CSO, Meltem Demirors, spoke to CNBC and explained what she thinks of Bitcoin’s sudden surge in price and how institutional/retail investors are reacting to this.
Meltem Demirors said that there could be an indirect correlation between the trade wars and questions about global growth; also adding that it could be a factor in Bitcoin’s recent rally.
“There are three main themes going on, one, there is a lot of global macro unrest, there is a lot of volatility in the market; times have changed, the end of 2018 was rough in the capital market, now we are seeing a lot of volatility in tech stocks and so maybe Bitcoin is starting to look, not so crazy to investors.”
The second main theme that Demirors stressed was privacy. She said that there were big efforts on the Hill, especially with new privacy regulations coming, the potential breakup of Facebook, and people talking about Apple’s anti-trust suits.
Finally, Demirors spoke about the third theme, which was performance of “tech stocks.” She added,
“We’ve seen a lot of tech IPOs that haven’t performed the way investors expected. So again, the idea of a new asset class, the idea of Bitcoin connecting with legacy finance is really appealing for class investors looking for innovation and high growth.”
Further, Demirors spoke about Bitcoin’s price and whether it will climb higher in the near future. She said that the price of Bitcoin corresponded to the inflows into Bitcoin and that the price would reflect positively as more people buy and hold it.
According to Demirors, Square, which is the primary way retail investors can access Bitcoin, reported an increase in Bitcoin purchasing volume. This signified that people bought Bitcoin through the crypto winter, indicating investor interest in Bitcoin.