John D’Agostino, Head of Strategy at Coinbase Institutional, recently appeared on CNBC’s Squawk Box to discuss the surge in Bitcoin’s price and the increasing interest from institutional investors. His comments caught the attention of venture capitalist Anthony Pompliano, who shared his excitement about institutional players accumulating Bitcoin—a trend Pompliano noted would have been “unfathomable just 2-3 years ago.”
Bitcoin Price Surpasses $94,000
During the interview, CNBC host Andrew Sorkin asked D’Agostino about the driving forces behind Bitcoin’s recent growth. On Wednesday, Bitcoin (BTC) reached a local high of $94,510, marking a 3.67% increase in just 24 hours and a 6.68% rise over the past two days, up from $88,570.
D’Agostino pointed to several factors fueling the rally, notably the decoupling of Bitcoin from traditional stock markets. He explained that Bitcoin’s relationship with stocks can exhibit both negative and positive correlations. A negative correlation arises when markets are panicking, while a positive one occurs during market booms—an outcome D’Agostino views favorably.
Short-Term Trends and De-Dollarization
When asked about the current drivers behind Bitcoin’s climb, D’Agostino emphasized the short-term nature of the market conditions, suggesting that this could change in the near future. He noted that similar factors could have different impacts on Bitcoin’s price at a different time, a dynamic that also applies to other assets like gold.
One key factor influencing Bitcoin’s growth, according to D’Agostino, is the ongoing trend of “de-dollarization,” driven by global trade tensions and the weakening of the U.S. dollar. Many financial institutions, including sovereign wealth funds and large insurance pools, have been accumulating Bitcoin as a hedge against the dollar’s potential decline. These institutions are holding Bitcoin for the long term and are increasingly reluctant to convert it into fiat currency, especially if they anticipate further dollar depreciation.
Bitcoin as a “Digital Gold”
D’Agostino also touched on the growing belief among traders that Bitcoin shares characteristics with gold, particularly as a safe-haven asset during periods of market instability. As uncertainty rises in the global economy, many are turning to Bitcoin as a store of value, similar to how gold has traditionally been viewed in times of crisis.
With Bitcoin’s price climbing and institutional interest intensifying, D’Agostino’s insights underscore the changing landscape for cryptocurrency, positioning Bitcoin as a significant player in the broader financial ecosystem.
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