Bitcoin evangelists like Circle CEO Jeremy Allaire claim that BTC is being embraced by investors as a “safe haven asset” to hedge against stock market volatility.
Is bitcoin is a safe haven asset?
Proponents of the bitcoin-as-hedge argument claim this is because there’s an inverse correlation between the bitcoin price and stock-market movements.
However, that does not appear to be the case in recent days. For example, on the days the Dow tumbled last week, so did the bitcoin price.
Critics also insist that no asset that’s as volatile as bitcoin could reasonably be considered a “safe haven” against an unstable stock market. Investors usually seek safe havens in assets that are less volatile than the ones they’re seeking refuge from.
Meanwhile, Boeing is increasingly being touted as a financial hedge. This is noteworthy because airlines are not typically considered safe investment bets.
However, Boeing is trying to change that negative perception. Case in point: Hedge funds just released their second-quarter trades. And Boeing has emerged as one of the most popular stocks right now (i.e. – stocks with the most hedge fund dollars invested).
According to TipRanks, Boeing is included in 19% of the 363 hedge funds surveyed by RBC Capital. Indeed, a Wall Street consensus of 32 financial analysts rate Boeing a “strong buy.”