Bitcoin To Become Sought-After Asset Over Traditional Finance, This Analyst Says

Bitcoin To Become Sought-After Asset Over Traditional Finance, This Analyst Says

Bitcoin (BTC)’s potential as a safe haven asset is gaining traction among investors as recent U.S. bank failures change market sentiment, according to Bloomberg Intelligence Senior Macro Strategist Mike McGlone.

McGlone explained that high-profile bank failures have raised concerns about the stability of the traditional financial system. This has led investors to look to alternative assets such as Bitcoin that are not tied to traditional banking institutions.

As more investors look to diversify their portfolios and hedge against potential economic downturns, the cryptocurrency’s unique properties, according to McGlone, make it an increasingly attractive option.

Why cryptocurrency is gaining the upper hand

Concerns about inflation and the possibility of a recession are driving investors into assets such as Bitcoin, bonds and gold, according to mclone. He noted that past liquidity crises will not be resolved as quickly due to inflation concerns, which will continue to resonate for years.

As a result, traditional assets like US equities are losing their appeal. McGlone anticipates that investors will now be more interested in buying Bitcoin during the slumps and reducing their holdings during the rallies. This marks a significant shift in the fundamental market paradigm due to the current crisis.

Bitcoin as a highly sought after asset

In a stunning rise, Bitcoin was named the best performing asset of the year by financial giant Goldman Sachs, amid a continued upward trend. At press time, Bitcoin’s year-to-date (YTD) gains stand at an impressive 70.47%, with its current trading value just above $28,000.

Goldman Sachs has closely monitored the leading digital currency’s rapid tilt and its superiority over other assets. The banking giant reported that Bitcoin outperformed traditional assets such as gold, 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 comparatively YTD return. modest 8%.

Must Read:  Bitcoin's Rejection Coincided With These Whales' Cost Basis

The Alpha Coin Explosion in 2023

The leading cryptocurrency is gaining momentum in 2023 as investors look to protect their assets in uncertain times. With concerns about inflation and the possibility of a looming recession, traditional assets like 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 looking to diversify their portfolios and hedge against economic turmoil.

BTC total market cap now at $531 billion on the daily chart at

Additionally, BTC has been gaining mainstream acceptance as more businesses adopt it as a form of payment, signaling a growing acceptance of cryptocurrencies in the business world.

All these factors combined led to a increase in demand for Bitcoinincreasing its price and making it a hot topic in the investment world. As the world becomes more uncertain, experts like McGlone believe the King’s Coin is providing a glimmer of hope for those looking to secure their financial future.

-Featured image by Antonio Olmos/The Observer

Leave a Reply

Your email address will not be published. Required fields are marked *