Raghu Yarlagadda, the CEO of Falcon X, recently revealed the main reasons why BTC can act as a hedge on the markets. According to him, geopolitical conflicts and inflationary hedges are the main reasons why there is a huge interest of institutional investors in crypto.
Falcon X CEO’s Views on Institutional Investors’ Interest and BTC Price Surge
Addressing the recent price surge of Bitcoin and the interest of institutional investors in the digital asset, the CEO of Falcon X explained the main reason why the institutional investors are going for BTC, and whether, this keen interest in the digital asset is really behind the price surge. He said:
“The first and foremost reason is the inflationary hedge. As the world is printing more money, it is very clear that Bitcoin is emerging to be one of the inflationary hedges.”
Raghu Yarlagadda, in addition to this, mentioned the second reason, which may not be quite obvious, but still, have some role to play in this. He said:
“With the new US administration coming in, there are a lot of people who say that the trade war between the US and China is going to aggravate just a little bit more.”
He further explained his second reason, citing that BTC tends to perform better from a perspective whenever there are tensions between American and Chinese relations.
US-China Conflicts Good For BTC
Vitalik Buterin, the creator of ETH, revealed in a recent conversation with Morgan Beller, the general partner at NFX, that though it is bad for humanity, US-China tensions are good for cryptocurrency. The third reason why institutional investors are interested in Bitcoin is the ability of Bitcoin to be traded 24/7. They have access to trade BTC anytime they want unlike the stock markets, which are not open on the weekends and are bound by international boundaries.