For years, as the price of bitcoin rose, and rose, and then plummeted, and then rose again, one question has swirled along with it: could the cryptocurrency one day become a true "flight-to-safety" asset in a volatile stock market, akin to Treasury bonds or gold?
One of the biggest asset managers of digital currencies says that day is now here. Michael Sonnenshein, managing director of Grayscale, told Cheddar in an interview Monday that recent developments in the U.S.-China trade war are proving to be evidence that Bitcoin has emerged as a safe-haven asset.
"For the first time in quite a few years, we're seeing bitcoin is just as much part of the conversation as gold is," Sonnenshein said.
The price of bitcoin, now hovering around $11,400 has spent the summer trading in a (relatively) tight range, at least for an asset known for its stomach-churning ups and downs. As global crises escalate ー whether it's currency manipulation by China, protests in Hong Kong, or tensions with Iran ー the price of bitcoin has responded by edging higher. The charts indicate that bitcoin is being increasing favored by investors looking for a hedge against volatile global markets, according to Sonnenshein.
"In all these instances, we're seeing bitcoin really start to outperform as the market started to digest these shocks to the system," he said.
Gold has long been the flight-to-safety standard, but as the world becomes more digital, it would follow that "digital gold," as some investors call bitcoin, becomes more enticing. Like gold, it is "verifiably scarce," said Sonnenshein. Unlike gold, it is easily portable and divisible.
"There is a rotation out of gold and into assets like bitcoin," Sonnenshein said. "There's no question about that."
The investors Sonnenshein speaks to say they are happy with global regulators increasing oversight of the crypto markets now that Facebook is dipping its toes into the water. For years, crypto was seen as the wild west ー and the sudden fluctuations in the price of bitcoin reflected that. But as regulation increases, along with increasing geopolitical turmoil that seems likely to continue to rattle markets, bitcoin could soon prove itself to be the safe-haven investment its backers have long predicted, and its critics have long brushed off.
"That narrative is starting to change," Sonnenshein said.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
