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Cryptocurrency News Articles
Bitcoin Unfazed By Geopolitical, Tech Tensions: Green
Jan 29, 2025 at 09:30 pm
Often considered as a safe-haven asset during economic crisis, Bitcoin has created a special niche in finance. Its distributed character, free from conventional financial restrictions, gives it a unique appeal.
Bitcoin’s status as a safe-haven asset during times of economic crisis has carved out a unique space for the crypto in the world of finance. Its decentralized nature, free from the constraints of traditional financial institutions, gives it a particular allure. However, Bitcoin’s volatility has brought into question the reliability of this safe-haven status. While some argue that the crypto’s instability renders it too unpredictable for the role, others maintain that it provides a buffer against market turbulence.
The CEO’s Perspective
Nigel Green, CEO of deVere Group, strongly believes in Bitcoin’s role as a safe haven, highlighting its decentralized architecture and limited supply as crucial factors that render it secure and resilient amid financial instability. According to Green, the flagship coin’s ability to operate independently of corporations and governments further enhances its appeal.
Chinese AI Shaking Up Markets
Meanwhile, Chinese AI company DeepSeek is making waves in global markets. Their V3 and R1 models are effectively launching an arms race in artificial intelligence, rivaling their US counterparts while consuming fewer resources.
Bitcoin is a risk asset but it’s holding remarkably well relative to tech stocks. The market is pricing in stability for Bitcoin despite the volatility – a great step for #Bitcoin #deVere https://t.co/o3Cq86FtfM
— Nigel Green (@nigeljgreen) January 27, 2025
This development marks a significant shift in the tech sector, with the US stock market experiencing losses in the hundreds of billions. For instance, chipmaker Nvidia lost a record $589 billion in a single day of trade as DeepSeek was introduced last week, the highest one-day loss ever recorded on Wall Street.
Despite these events, Green urges investors to remain calm. In a statement, he maintains that BTC is unaffected by the success or failure of any single entity — including the rise of DeepSeek, which is viewed as China’s answer to OpenAI.
“This is not the time for panic; it’s a time for perspective,” he says.
According to the CEO, Bitcoin’s fundamentals remain as strong as ever. “History has shown us that such moments of volatility often create the most significant opportunities for forward-thinking investors.”
A Global Tech Power Play
Beyond the corporate narrative, DeepSeek's rise highlights a broader shift in the global balance of power over emerging technologies. The competition between the US and China has rendered markets increasingly sensitive to geopolitical tensions.
Among other world events, Bitcoin’s appeal as a safe haven is influenced by trade tensions and geopolitical conflicts. The alpha coin garnered attention following Brexit and the US-China trade war. However, it’s worth noting that Bitcoin's performance can vary and its volatility remains a key concern.
Bitcoin Unfazed By Geopolitics, Tech Tensions: Green
“Unlike tech stocks, Bitcoin isn’t beholden to the performance of any one company or nation,” he said.
Highlighting Bitcoin’s decentralization, borderless nature, and finiteness, Green added: “Bitcoin is an asset uniquely positioned to thrive in a world increasingly shaped by geopolitical tensions and technological disruption.”
“Geopolitical tensions and economic rivalries will likely continue to escalate,” said Green. “Bitcoin, by design, is insulated from these forces. It operates outside of national borders and policies, making it a safe harbour in turbulent times.”
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