U.S. Markets open in 6 hrs 32 mins

Bitcoin tops $8,000: A ‘great moment’ for crypto

As volatility grips the stock market, money has been flooding into bitcoin, which is now trading at its highest level of the year.

David Siemer, CEO of blockchain-focused investment firm Wave Financial, calls it a “great moment” for the crypto market.

“It’s a natural hedge,” he told Brian Sozzi on Yahoo Finance’s The First Trade. “The pitch for crypto for people like me has always been that it’s a non-correlated asset with the stock market, and it’s proven that a lot of times.”

Much like the general stock market, Siemer says “there’s never one reason” why crypto moves, but the sector was “pretty oversold for a long time” and “we’re seeing it thaw a little bit.”

“It’s going to be a volatile asset class for a very long time,” he says. “We’re still in a very speculative market.”

That’s evidenced in part by the huge run-up in bitcoin over the last four months. It’s more than doubled in value since January.

“We thought it would go up,” Siemer said, and his firm had set an $8,000 price target. “We didn’t think it would go up quite this fast.”

Bitcoin was trading more than 2% higher Tuesday, at around $8,013.

Bitcoin 3-month price chart (Yahoo Finance)

He says it’s “very unlikely” bitcoin will hit $19,000 this year, and in all likelihood crypto may slide a little.

“I think there might be a little pullback from here,” he says. “$3,000 to $8,000 in four months is pretty extraordinary.”

But he remains bullish on crypto.

“There are a lot of tailwinds right now,” Siemer says. “There’s a lot of challenges in the world. Every asset in the world is fairly fully priced right now. So I think we’re seeing a lot of interest in crypto as that hedge.”

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn,YouTube, and reddit.