An executive from financial firm Bleakley Advisory Group told CNBC about his opinion that bitcoin was actually useful for something. He said that bitcoin, with its volatility, was useful as a tool to predict market crashed, Coin Telegraph reported.
He said this nature was highly helpful, considering investors could use it to predict the occurrences and fallout that would happen in the ongoing US-China trade war.
Stock market weakness and trade war escalation fuels the uncertainty felt by investors now.
Most of these points toward the weakening of the dollar. Bleakley's chief investment officer, Peter Boockvar, said that bitcoin's recent behavior presented the cryptocurrency as a possible asset alternative. He did not promote investing outright into the cryptocurrency though said that it was useful as a 'measure of the market.'
In an interview with the reporters, Boockvar cleared that he actively observed bitcoin as a signal and indicator of things.
He said that owning it was out of the question for him, but the rise in bitcoin value was hard to ignore; to him, it was an indicator of the possible actions that countries and markets were about to do in the face of the current geopolitical financial trends.
The market is under the impression that the Federal Reserve will be cutting interest rates twice before the end of the year. CNBC reported that the Trump administration is adamant on escalating its multi-faceted trade war, and traditional "safe havens" like gold-which Boockvar preferred to bitcoin-and the US dollar are beginning to take flight as well.
Boockvar pointed out an interesting observation on bitcoin-it soared right before gold did. It might be too early to call, yet he said that this was one of the indications of bitcoin being a positive alternative. It could also be an indicator of a change in the stock fortunes of assets like gold and currency.
Gold held a three-month peak on Tuesday, according to reports, and that alone was an interesting indicator, according to the Bleakley Advisory Group executive. He observed how its rally coincided with the rise of the US dollar index when it is typical that these assets are usually inverse to each other.
Boockvar made it clear that he didn't care for bitcoin as an asset but as a signal for things to come. If the surge is any indication, it may be that fiat currency and gold are in for good times as well.