Bitcoin (BTC-USD) is in the spotlight as President-elect Trump reportedly considers crypto enthusiast Paul Atkins to lead the Securities and Exchange Commission (SEC). The cryptocurrency pulls back after rising when South Korea declared martial law, only to lift it hours later. Kraken head of advice Thomas Perfumo joins Seana Smith and Madison Mills on Catalysts to discuss the role of bitcoin in investors’ portfolios amid international violence towards Trump’s second term in the White House.
“The geopolitical event that is happening and bitcoin trading up or down, for me, does not guarantee that it is reacting to the news. In particular, when I think about the movement of bitcoin recently, it is closely linked to capital net inflows, “Perfumo. he says, explaining, “I’m looking at ETF flows. I’m looking at any kind of buying pattern from MicroStrategy (MSTR) … and also option activity on [the iShares Bitcoin Trust] IBIT itself has been on the rise since its inception a few weeks ago. “
He says, “They, to me, are a kind of acceleration of the movement of large prices,” adding, “When it comes to political events, what you really look at is the relative activity with respect to other macro markets.” Perfumo says, “What I saw most about that event was more like the risk of dropping the risk of wealth in general, rather than crypto being an alternative to that event.”
“I think the long-term trend of talking about crypto, at least for the next few years, is going to be about issues like the pro-innovation agenda and what crypto can bring to that.”
To check out more technical information and analysis on the latest market action, check out more Catalysts here.
This article was written by Naomi Buchanan.