Global Equity Meltdown to Lift Bitcoin as Digital Gold?
In times of market turmoil, investors generally move their money away from riskier holdings into safe-haven currencies or precious metals such as gold. For Tim Draper, a founding partner of prominent Silicon Valley venture capital fund Draper Fisher Jurvetson, bitcoin could emerge as a safe-haven store of value during this type of market environment as well. Global equity markets have been tumbling in the past few days, only to enjoy a brief respite mid-week then start falling again. China has already taken several measures to stem the bloodbath in their stock market, such as cutting....
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Christopher Wood, the global head of equity at Jefferies, a global financial services company, says the firm will reduce exposure to gold in favor of bitcoin. He adds that there are plans to increase the crypto component of Jefferies’ long-only global portfolio for U.S. dollar-denominated pension fund if and when the bitcoin price drops from current levels. As a result of this decision, 5% of the fund will now consist of bitcoin. The Case for Bitcoin Before making the decision, Jefferies allocated funds as follows: 50% towards (now 45%) physical gold bullion, 30% to Asia ex-Japan....
It has been a rollercoaster of a ride for global equity investors over the past few days. Besides the month-long slide in the Chinese markets, the Dow plummeted from approximately 16,459 on August 21stto 15,446 on the 24th. When the going gets tough, investors have historically flocked toward assets that are considered safer, including cash, gold, and treasury bills. Often times, the asset of choice is gold because it is considered the greatest store of value. However, some think that Bitcoin might one day trump gold as a means of protecting against volatility. Tim Draper, founding partner....
The investment firm already has significant exposure to gold, minerals, precious metals, petroleum, and other natural resources. Texas-based investment manager U.S. Global Investors, which reported $4.6 billion in assets under management as of Q1 2021, has bought exposure to Bitcoin.According to Aug. 30 filings from the U.S. Securities and Exchange Commission, U.S. Global Investors added more than $566,389 worth of shares of Grayscale Bitcoin (BTC) Trust, or GBTC, to three of its eight mutual funds as of June 30. The filings show the company invested $302,899 GBTC in its Gold and Precious....
Analysts warn that a recovery in gold and the U.S. dollar index could negatively impact Bitcoin’s bullish momentum. Dan Tapiero, the co-founder of 10T Holdings, said weak hands have been shaken out in the gold market. This raises the probability of a gold rally in the near term, especially as it comes off of an 80-day pullback period.A rally in gold and the dollar may dampen Bitcoin priceBitcoin has seen strong momentum in the past three months, as it achieved an all-time high on Coinbase and a number of other major exchanges.Despite this, the threat of a correction for Bitcoin is a real....
Global investors cut gold exposure in favor of Bitcoin, but does the digital coin have any chance to cannibalize gold? Bitcoin’s (BTC) parabolic surge in 2020 will not hurt major traditional assets like gold, according to Goldman Sachs.One of the world’s biggest investment banks, Goldman Sachs reportedly sent a note to investors, reassuring its clients that Bitcoin does not pose an existential threat to gold, Bloomberg reports Dec. 18. “We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist,” the company wrote.Goldman Sachs still....