Coronavirus News Asia

Investment guru pivots hard to bitcoin


Bitcoin has largely failed to perform as a so-called safe-haven asset during the coronavirus crisis – but perhaps that has begun to change, wrote Billy Bambrough in an article for Forbes.

The bitcoin price fell sharply last month amid a broader market crash that will go down in history as one of the worst market routs of all time, but outperformed major US indexes for the first quarter. 

Now, renowned former Goldman Sachs fund manager Raoul Pal has warned the coronavirus crisis will cause history’s worst insolvency event, while moving 25% of his portfolio to bitcoin. 

“I think the balance of probabilities are that this is a much longer event – in terms of economic impacts – than anybody is pricing in,” Pal, who is the chief executive of research outfit Global Macro Investor and founder of business and finance media platform Real Vision, told the Lindzanity podcast. 

“I think it’s a huge societal change that’s coming from all of this,” Pal said, adding that he thinks the coronavirus crisis will cause “the largest insolvency event in all history.”

The US unemployment rate could rise to more than 32% over the next three months as more than 47 million Americans lose their jobs, economists at the Federal Reserve warned this week. 

Others have echoed this, with one official at the UK’s Bank of England warning unemployment in Britain and the US could surpass levels reached during the 1930s Great Depression within months. 

The leisure, travel and tourism sector has been hit first with restaurants and bars closing their doors last month but other industries are in the firing line. 





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