Circle CEO Jeremy Allaire says the appeal of Bitcoin (BTC) among investors is growing both as a store of value and as a hedge against “the world going to hell.”
Monaka interview and CNBC On Tuesday, a crypto executive outlined three catalysts he believes are behind cryptocurrencies’ recent rally, all of which are unrelated to macroeconomic factors.
architecture in the bear
Allaire said some of the rebound was already staged during the depths of last year’s bear market, when high-profile exchange bankruptcies left a stain on the industry’s reputation.
“There’s continued to be very important investment in the actual infrastructure,” Allaire said. I got it..
He blamed the temporary crash in 2002 after the dot-com bubble, when internet companies lost investor support, but broadband and mobile devices were “lit” in preparation for full-scale introduction a few years later. He compared it to the situation at the time.
One example is the Solana blockchain, a Circle favorite that enables fast and cheap USDC payments. SOL, the network’s native asset, has risen 10% over the past seven days.
The construction of new crypto investment products by major financial companies, namely BlackRock and Fidelity, is also a key element. Both asset managers are in a fierce race to launch the first U.S. Bitcoin spot ETF, which could be approved by analysts by early January.
This ETF is expected to attract large amounts of previously untapped institutional capital into BTC. According to Allaire, institutional engagement is also helping to foster global regulatory clarity regarding cryptocurrencies, even if the United States is particularly lagging in that regard.
“Major financial market centers around the world have actually put in place clear regulations for digital assets and stablecoins…The US is lagging behind,” he said.
Bitcoin: a hedge, not a currency
Speaking specifically about Bitcoin, Allaire acknowledged that Bitcoin is the largest “digital commodity”, an asset class that is “here to stay” alongside physical variants such as gold and silver.
However, he does not consider BTC to be a currency and believes that the digital dollar will continue to dominate.
“I think you’re hearing from sovereigns all over the world, from the Ray Dalios to the Larry Finks…In a complex geopolitical environment, this is an asset to have some knowledge of.” Allaire concluded.
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