Bitcoin will become a sought-after asset over traditional finance, says this analyst
Bitcoin’s (BTC) potential as a safe haven is gaining momentum among investors as recent US bank failures change market sentiment, according to Bloomberg Intelligence senior macro strategist Mike McGlone.
McGlone explained that the high-profile collapses of banks have raised concerns about the stability of the traditional financial system. This has led to investors seeking out alternative assets, such as Bitcoin, which are not linked to traditional banking institutions.
As more investors seek to diversify their portfolios and hedge against potential economic downturns, crypto’s unique characteristics, according to McGlone, make it an increasingly attractive option.
Why krypton gets an advantage
Inflation concerns and the possibility of a recession are driving investors towards assets such as Bitcoin, bonds and gold, according to McGlone. He noted that past liquidity crises will not be resolved as quickly because of concerns about inflation, which will continue to reverberate for years.
As a result, traditional assets such as US stocks are losing their appeal. McGlone expects investors will now be more interested in buying Bitcoin during dips and reducing their holdings during rallies. This marks a significant shift in the market’s fundamental paradigm due to the current crisis.
Bitcoin as a highly sought after asset
In a stunning rise, Bitcoin has been named best asset of the year by financial giant Goldman Sachs, amid a continuous upward trend. At the time of writing, Bitcoin’s year-to-date (YTD) gains stand at an impressive 70.47%, with the current trading value just over $28,000.
Goldman Sachs has closely monitored the rapid rise of the leading digital currency and its superiority over other assets. The banking giant reported that Bitcoin has outperformed traditional assets such as gold, the S&P 500, real estate and the Nasdaq 100. According to Goldman Sachs, Bitcoin’s closest competitor is the MSCI emerging markets index, with a relatively modest YTD return of 8%.
The explosion of the alpha coin in 2023
The top crypto gains momentum in 2023 as investors seek to protect their assets in uncertain times. With concerns over inflation and the possibility of a recession looming, traditional assets such as stocks and bonds are losing their luster.
Bitcoin, on the other hand, offers a decentralized and secure investment option that is not tied to any government or financial institution. This makes it an attractive choice for investors who want to diversify their portfolios and protect themselves against economic turbulence.
BTC total market cap now at $531 billion on the daily chart at TradingView.com
Moreover, BTC has gained mainstream acceptance as more companies adopt it as a form of payment, signaling a growing acceptance of cryptocurrencies in the business world.
All these factors together have led to a increasing demand for Bitcoindriving up the price and making it a hot topic in the investment world. As the world grows more uncertain, experts like McGlone believe the royal coin offers a glimmer of hope for those looking to secure their financial future.
– Featured image from Antonio Olmos/The Observer
