Bitcoin (BTC) once again proves itself as a flight to safety for investors, says Catherine Coley,

CEO of Binance US in a interview  with news channel CNBC.

The price of the crypto currency is booming again in 2020.

Coley: "In politically uncertain times you can rely on bitcoin as a flight to safety, an asset that you always have access to".

Bitcoin (BTC) as a flight to safety.

The bitcoin rate went through the $ 10,000 limit twice in 2020 and currently trades for around $ 9,600 at Bitstamp.

The bottom was at $ 6,540 on December 18, 2019 and the price has since been adjusted to $ 10,457 on February 13, 2020.

There is currently a correction going on since this preliminary summit.

The price is logically the result of supply and demand and the demand for bitcoin has increased sharply in recent months.

One of the arguments that returns in the discussion is bitcoin as a store-of-value. A safe haven in political and economic times.

As soon as the US kills the highest general in rank of Iran with a drone attack.

Or the advancing Coronavirus that has paralyzed much of China's economic traffic.

This has consequences for Western manufacturers such as Apple, because deliveries are delayed.

An asset that is not directly linked to the financial markets (just like gold) and to which you yourself have access without a third party.

Regulation

It is important for the (Chinese) investor to safeguard his capital in economically uncertain times to prevent devaluation of his money.

One of the options besides precious metals is bitcoin.

That is also what Catherine Coley, a former manager at Ripple, thinks, but since the beginning of 2019, Binance US has been in charge.

In the interview, she points out a number of reasons why the prize made (again) a flight through the $ 10,000.

She sees the fact that government agencies want to regulate the industry around bitcoin as an advantage.

First of all, the Grayscale investment fund has been recognized by the Securities and Exchange Commission (SEC) as a "reporting company".

It is therefore the first "crypto company" that has this status.

In practice it comes down to: all quarterly and annual reports are shared with the stock market watchdog.

Grayscale Bitcoin Trust is one of the most popular ways in the US to have exposure with bitcoin, without owning bitcoin itself.

The value of the share in the fund is derived from the (development) of the bitcoin price.

Secondly, Coley finds the position of SEC Commissioner Hester "Crypto Mom" ​​Peirce encouraging.

He recently argued for a "three-year testing ground for digital asset companies" with the approval of the stock market watchdog to give the industry some peace.

Bitcoin halving and futures

Moreover, she sees more interest due to the upcoming bitcoin halving and the growing number of bitcoin investment products on the market. This has led to a record of "open interest", or open futures contracts from traders.

Among other things at the Chicago Mercantile Exchange the "open interest" reaches new heights.

This means that traders speculate over a longer period on a (higher) rate of bitcoin. One of the drivers behind this behavior is the upcoming bitcoin halving. Part of the market does not believe that this "four-yearly event" is priced in.

Historically, the price goes up because the supply of new bitcoins decreases (with constant or rising demand, ed.). By opening a future at price point A and letting it run at price point B, speculators hope for a profit.

The bitcoin halving will take place somewhere in May, depending on a large number of factors such as the computer power of the bitcoin network.