A Bitcoin comeback could be underway.
Just as the cryptocurrency began its latest week of success, ProShares’ Simeon Hyman highlighted a bullish Bitcoin trend on CNBC’s “ETF Edge.”
“If you look at Bitcoin, it’s up a little bit and stocks are down [since the Iran war began,]the company’s global investment strategist said on Monday. “So I think the diversification story really holds up in this current environment.”
From market close on Friday Bitcoin has gained 5% this week – with most of the gains coming within 24 hours. Additionally, it is up about 8% since the Iran War began on February 28th.
Now it is S&P 500 And Gold have fallen by more than 3% since the start of the war with Iran, and technology is strong Nasdaq has fallen by more than 2%.
ProShares is active in the cryptocurrency space and operates more than a dozen cryptocurrency ETFs. It started the ProShares CoinDesk 20 Crypto ETF (KRYP) last month. It’s up nearly 5% since the start of the Iran war, but the fund has lost about 7% since its debut in early February.
Despite Bitcoin’s recent strength, it is still down more than 40%% from its record high of $126,198 reached last October.
Stock chart iconStock chart icon
Bitcoin’s volatile year
Kim Arthur, founding partner and CEO of Main Management, believes Bitcoin is in a classic crypto winter – a so-called phenomenon that typically occurs every four years. According to Arthur, it is in its lowest phase.
“Bitcoin was trading at $125,000 five months ago, so when this conflict broke out it was down more than 50 percent,” he said in the same interview. “I like the fact that it outperforms many other asset classes [since the war,] but… you have to widen the lens a bit.”
Arthur, who is exposed to Bitcoin, says he is currently taking a passive investment approach to the cryptocurrency.
“For myself as an asset manager and portfolio manager… I look at Bitcoin as my benchmark and then compare everything else to it,” said Arthur, who added that Bitcoin has been an extremely difficult champion to beat, especially since 2021.
The digital currency has gained about 15% in the last five years.
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.