Citadel Founder Announces Bitcoin Involvement

Bitcoin has seen recent developments that have increased institutional investors' interest in this cryptocurrency. Ken Griffin, the founder of Citadel, described the trend of investors moving away from the dollar towards Bitcoin and other alternative assets as "truly concerning." Griffin stated that this trend indicates a global flight from the dollar has begun.

In an interview with Bloomberg, Griffin noted that investors have started to de-dollarize their portfolios in response to U.S. Treasury risk. "People are now moving their money into value preservation instruments like Bitcoin, gold, and silver rather than keeping it in dollars. There is serious asset inflation outside of the dollar," he said. Recently, the possibility of a U.S. government shutdown and expectations of interest rate cuts have increased demand for Bitcoin and precious metals.

Griffin referred to this new trend as a "process of monetary value loss," emphasizing that Bitcoin has become a "new safe haven" for investors. He viewed the continued implementation of fiscal and monetary stimuli by the U.S. during recessionary periods as a natural response for investors to turn towards Bitcoin, which simultaneously weakens the dollar. "The U.S. economy is experiencing a sugar high right now," Griffin stated, highlighting the significance of the secure space offered by Bitcoin in this uncertain environment.

In conclusion, Citadel's founder Griffin warned that this transformation in the financial system may shake the dollar's status as a reserve currency in the long term. Investors need to carefully watch this change and the opportunities presented by Bitcoin. The increase in institutional purchases could lead to a rise in Bitcoin's value and adoption by a broader investor base.