Veteran economic theorist Max Keiser believes the worst situation for the world’s stock markets will be for Bitcoin, Bitcoinst reported.
The founder of Heisenberg Capital, a cryptocurrency venture company, said he expects declines in stock markets, which are feared to drop by 15,000 points. Keiser also believes that such a stock market drop will enable investors to move their assets towards assets perceived as safe havens. Keiser explains:
The stock market is showing signs of extreme fragility. There’s a gap of 15,000 points below the current prices. So if Bitcoin is $25,000 gold, it’s $3,000.
Keiser’s comments came at the same time as comments from the world’s largest wealth managers sharing their pessimistic thoughts about stock markets. UBS Wealth Management, which manages $2.5 trillion worth of assets in its portfolio, has advised customers to reduce their position in risky assets. Canadian-based investment management company Fiera Capital said global market sensitivity is fragile and investors are behaving at risk.
Both Keiser and UBS and Fiera attribute these pessimistic views to trade tensions between the United States and China. Following steps taken on tariffs, US President Donald Trump urged regional companies to “look for alternatives to China”.
However, speaking at the G7 Summit after this move, Trump expressed appreciation for the steps China has taken to restart the negotiations.
Although Trump seems to have changed his mind, the American-Chinese trade wars are unlikely to be resolved anytime soon. Therefore, investors’ search for the safe harbor is increasing day by day. In this case, Bitcoin and gold are the most preferred options. Chris Reinertsen, marketing manager at Rhythm Technologies, said recently that investors now prefer Bitcoin as a safe haven due to economic uncertainties around the world.