The bitcoin price is up by more than 30 percent in less than two weeks against the U.S. dollar following a 127 percent year-to-date gain from $4,000 to $9,100.
Fundamentals such as the hash rate of the Bitcoin blockchain network remains strong amidst an intensifying currency crisis as a result of the trade war between the U.S. and China.
Raoul Pal, the founder and CEO at Global Macro Investor and Real Vision Group, stated that bitcoin, like gold, is "doing it's job" as an alternative store of value, indicating that the uncertainty in the global economy could be fueling the sentiment around bitcoin.
IS BITCOIN BEING SEEN AS AN ALTERNATIVE STORE OF VALUE?
According to Pal, throughout the past several months, bitcoin has been operating as an alternative store of value as seen in its high level of volatility.
It has seen a steady inflow of capital from institutional investors since the beginning of 2019 based on reports of strictly regulated investment vehicle operators in the likes of Grayscale and a noticeable increase in volume in most major markets such as the U.S., Japan, and South Korea.
"And bitcoin is doing its job of suggesting an alternative system is gaining in probability (it trades like call option on a new system, in my mind). The price moves are so enormous (and thus the increase in probabilities are so fast) that you have to use log charts," said Pal.