Bitcoin’s (BTC) potential as a safe-haven asset is gaining traction among investors as recent U.S. bank failures shift 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 investors to seek out alternative assets, such as Bitcoin, that are not tied to traditional banking institutions.
As more investors seek to diversify their portfolios and hedge against potential economic downturns, the crypto’s unique properties, according to McGlone, make it an increasingly attractive option.
Why The Crypto Is Gaining An Edge
Inflation concerns and the possibility of a recession are driving investors towards assets like Bitcoin, bonds, and gold, according to McGlone. He noted that past liquidity crises will not be resolved as quickly due to concerns about inflation, which will continue to resonate for years.
As a result, traditional assets like U.S. equities are losing their appeal. McGlone anticipates that 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 ascent, Bitcoin has been named the top-performing asset of the year by financial behemoth Goldman Sachs, amidst a continuing upward trend. As of writing, Bitcoin’s year-to-date (YTD) gains stand at an impressive 70.47%, with its current trading value slightly above $28,000.
Goldman Sachs has closely monitored the rapid incline of the leading digital currency and its superiority over other assets. The banking giant reported that Bitcoin has outperformed traditional assets such as gold, S&P 500, real estate, and the Nasdaq 100. According to Goldman Sachs, the closest competitor to Bitcoin is the MSCI emerging markets index, with a comparatively modest YTD return of 8%.
The Alpha Coin’s 2023 Explosion
The top crypto is gaining 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 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 safeguard against economic turbulence.
BTC total market cap now at $531 billion on the daily chart at TradingView.com
Moreover, BTC has been gaining 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 combined have led to a surge in demand for Bitcoin, driving up its price and making it a hot topic in the investment world. As the world becomes more uncertain, experts like McGlone believe that the king coin is providing a glimmer of hope for those looking to secure their financial future.
-Featured image from Antonio Olmos/The Observer
Source: https://bitcoinist.com/bitcoin-to-become-sought-after-asset/