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.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
