Skip to main content

Market Overview

Barclays Investment Chief Compares Bitcoin To 'Flightless Bird'

Share:
Barclays Investment Chief Compares Bitcoin To 'Flightless Bird'

What Happened: Bitcoin (BTC) price corrected sharply from $57,000 to just under $50,000 earlier today, before recovering to $54,178 at the time of writing.

Over the course of its rally, the market-leading cryptocurrency has come under scrutiny from those skeptical of its success – most recently from Barclays (NYSE: BCS) investment chief Will Hobbs.

Hobbs, who is the Chief Investment Officer at Barclays’ Wealth and Investments, went on to compare Bitcoin to a “flightless bird.”

Why It Matters: Most analysts have suggested a key driver of Bitcoin’s successful rally has been the popular “store of value” narrative that surrounds the asset.

Many investors, including Tesla Inc's (NASDAQ: TSLA) Elon Musk, have cited Bitcoin’s inflation hedging properties during periods of excessive money printing as its most appealing quality.

Hobbs suggests that a change in government policies might lead to the cryptocurrency losing some value.

"My hunch is that if real interest rates turned positive, then bitcoin [will] suddenly look like quite a flightless bird. Because if I can get a positive yield from lending to the US or UK government, why am I going to own bitcoin?" he said to Business Insider.

What Else: Hobbs also stated that Barclays is not interested in Bitcoin at the moment, calling the zeal Bitcoin inspires ‘cultish.’

According to him, Bitcoin’s price movement is an example of the “narrative power of markets…similar to the Reddit story”, he said, referring to the GameStop Corp. (NYSE: GME) incident.

Image: Matt Brown via Wikipedia

 

Related Articles ($BTC)

View Comments and Join the Discussion!

Posted-In: Bitcoin Business Insider cryptocurrencies Elon Musk RedditCryptocurrency News Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com