Bitcoin a 'strong inflation hedge' amid volatile market: Okcoin CEO
Cryptocurrency exchange platform argues bitcoin has durability despite recent price volatility
Okcoin CEO Hong Fang argues bitcoin has a strong investment value as inflation risks continue in the market.
As investors scramble to find ways to shield their portfolios from a volatile market amid 40-year-high inflation, one cryptocurrency exchange CEO is signaling bitcoin could save you stress and money.
"It's hard to see where it's going in the short-term, but I still believe that it's a strong inflation hedge, particularly as we see that inflation risk is going on over the last 12 months or so," Okcoin CEO Hong Fang told FOX Business’ Dagen McDowell Friday.
Bitcoin hovered around $40,400 Friday morning, down almost 40% from its peak price last November. Fang, chief of one of the world’s largest crypto exchanges, argued the resistance level is expected on "Mornings with Maria."
"It is a market that has a lot of different forces going in different directions, and we're seeing macro uncertainty in the market," Fang explained, "particularly Powell saying that it's possible to raise the basis points by another 50."
BITCOIN TRADES AROUND $40,000 AFTER WINNING STREAK SNAPPED
Regardless of market volatility, Fang remained confident in bitcoin’s ability to protect against the possibility of decreased purchasing power.
Bitcoin was trading lower early Friday morning around $40,000, snapping a three-day winning streak. (iStock)
"Mid-term to long-term, I think the bull [market] is fighting it, but there's a strong force believing the store of value," the CEO said.
In a move that aims to bring crypto investments to the "next level," Fang also discussed Okcoin’s launch of its NFT marketplace, which will include uncapped royalty rates for creators and zero trading fees – the first exchange to do so.
"We have been a strong believer in building crypto and bringing crypto to all," Fang noted. "We believe the NFT is a place where we're giving more people a choice, investing in crypto assets of its unique characteristics."
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Prochain Capital President David Tawil discusses bitcoin trading above $40,000 after a volatile few weeks.
Okcoin’s NFT marketplace waitlist opens Friday, with Fang confirming a launch date in the second half of 2022.
"Hopefully we'll give creators more optionality when deciding how much royalties they’re going to charge for their NFT in the market," she said.