- Bitstamp CEO Bobby Zagotta has said that users are keeping away from crypto at the moment
- Zagotta noted that clients were “derisking” and that Bitcoin had not acted as a hedge against inflation
- He added that it may trade more like gold when it becomes more mainstream
Bitstamp CEO Bobby Zagotta has said that he has observed an “evolution” in the crypto markets in recent weeks as users look to “derisk” their crypto holdings. Speaking to CNBC, Zagotta noted that the geopolitical situation had not led to Bitcoin being the hedge that some had anticipated but was instead still being treated as a risk-on asset, and as such was being swapped for safer bets such as cash and gold.
Investors are More “Conservative” at the Moment
Zagotta told CNBC that he and his team had noticed a shift in attitude since the Russian invasion of Ukraine, saying that crypto was acting no different than the traditional stock market:
We think that generally people are a little more conservative in all their asset classes that they’re dealing with, and crypto is no exception.
The Bitstamp chief added that the exchange was seeing “a little bit more held in stablecoins” compared to this time last year as part of an “evolution in investing trends” that was akin to “derisking across the board”.
Bitstamp Head Sees Bitcoin Acting More Like Gold
Zagotta addressed Bitcoin’s performance during these turbulent geopolitical times, stating that he had “expected it (the crypto sector) to be more of a valid hedge, for instance against inflation, than what we’re seeing today.”
He added however that this was not unexpected given that the space is seen as a more speculative investment, which is the type that is normally the first to go in uncertain times as investors turn to the likes of gold and cash.
The Bitstamp CEO did have some words of optimism for holders however, stating his belief that as crypto becomes more mainstream is could start to play a “different role, more like gold”.