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The president of the hedge fund Weiss Multi-Strategy Advisers, Jordi Visser, stated that Bitcoin can serve as a liquid asset and a “point of exit” for investors amid instability in global markets.
According to his assessment, the current situation is influenced by rising commodity prices and issues within the credit system. The increase in oil, fuel, and other resource prices has not yet been fully reflected in inflation but could provoke a sharp market reaction.
“The best scenario for Bitcoin is that the credit issues, which I believe cannot be resolved on their own, persist,” Visser remarked.
He highlighted a decline in investor activity due to political tensions, particularly in the Middle East. In such circumstances, the importance of liquid instruments with round-the-clock access increases.
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Visser noted that Bitcoin occupies an intermediary position between traditional and technological assets. On one hand, it is influenced by factors from the IT sector; on the other, it possesses characteristics of a scarce asset similar to commodities.
He also pointed out a shift in the geography of demand. Previously, investors from Asia played a significant role, but now interest is shifting towards Middle Eastern countries, where sovereign funds view Bitcoin as an alternative to gold.
Visser suggested that the future dynamics of the crypto market will depend on the policies of the U.S. Federal Reserve (Fed). If the economic situation worsens, the regulator may focus on supporting liquidity, which could bolster crypto assets.
In his view, in a liquidity shortage, Bitcoin may stand out as an asset with high trading volume and 24/7 availability, creating conditions for growth.
Earlier, analysts from Glassnode reported that signs of recovery have emerged in the Bitcoin market; however, a sustainable upward trend has yet to be established.
