- According to Jeff Dorman, investment director of crypto investment fund Arca, Bitcoin will increase in value no matter who wins the US election.
- Dorman told Business Insider in an interview that a series of positive headlines about Bitcoin last week reduced the fear factor for investors entering digital markets.
- “Most Wall Street conservatives don’t want to be the first, and they don̵7;t want to be the last,” he said. “Once that priority is set, I think it opens up favorable conditions for others.”
- While no specific presidential candidate will make a difference to Bitcoin, Joe Biden is likely to be more favorable for cryptocurrencies in the long term, he said.
- Visit the Business Insider home page for more news.
According to Jeff Dorman, chief investment officer of crypto investment fund Arca, Bitcoin and other risky assets do not depend on who wins the US election, as they will ward off market uncertainty. school regardless of the outcome.
“They just want to know that there’s a winner,” Dorman told Business Insider in an interview on Thursday.
He said while the majority of investors expect a suspended election, or one where both sides do not have an overall majority, it doesn’t matter who wins because all the risky assets will be. saw a huge increase.
In the long term, however, Joe Biden’s win will be better for Bitcoin and gold as that means unprecedented levels of government spending, he said. “I could say Democrats are better for preventing inflation, but as long as there’s a clear winner at some point, things will be higher,” Dorman said.
Bitcoin has risen more than 4% this week to $ 13,282 on Friday and is up 80% YTD, bringing the digital currency closer to June 2019 highs of $ 13,880.
Read more: ‘We’re in a slump’: A 35-year market veterinarian says more stimulus won’t work to stop the coronavirus-induced recession – and warns the stock. more things will fall. ‘
It benefited from a slew of pro-headers last week. PayPal said it will let users buy, sell, and transfer Bitcoin, investor Paul Tudor Jones called it the “best inflation transaction” and fintech firms including Square, Microstrategy and UK Fintech Mode revealed. that they bought Bitcoin as part of the Cash Reserve.
Dorman, who has been in asset management for 17 years, said a billionaire investor like Tudor Jones investing in Bitcoin would not necessarily trigger a bull market, but it did weaken. Fear factor when entering the digital asset market.
“Most Wall Street conservatives don’t want to be the first, and they don’t want to be the last,” he said. “Once that precedent is set, I think it will open opportunities for others. I don’t think that alone is enough to initiate a bull cycle, but I think it’s enough to increase the total. Solvable market demand for Bitcoin. “
Read more: ‘I’ll fundamentally grow long’: Billionaire investor Chamath Palihapitiya has made 997% returns since 2011. He details five areas that shape his long-term investment book.
Dorman, who calls himself a Bitcoin bull, said fintech firms are disrupting the traditional financial industry, as they have the ability to move faster in providing services to digital assets.
“Look at the share prices of traditional banks versus fintech this year and see how PayPals and Squares and the like are doing compared to JPMorgan and Bank of America,” he said. He said of the potential of fintechs: “It’s a big deal. It’s a more negative thing for banks than a positive one for bitcoin, in the sense that you are providing an additional service that they item can not deliver “.
Dorman does not see Bitcoin as a safe-haven alternative to US dollars, but says it could provide a hedge against inflation.
Read more: Goldman Sachs shares 10 high-growth stocks it recommends to buy as investors reward companies that use cash to grow their businesses by 2021.