Helpful miscellaneous articles
regarding our retirement plan and planning.
Like you, I review my retirement nestegg and plan from time to
time. Recently, I went though some
continued education for some credentials I maintain and it occurred to me that
we all could use a review about these issues.
So with your help, we will share and post articles and info that may be
helpful and of interest to many of you in this section.
Is
BitCoin All of That? This article is pro
BitCoin and opines that this is the bomb.
Why
is Bitcoin becoming ‘central” to investment portfolios and will it last?
Once deemed too volatile and speculative
for serious investors – Bitcoin is increasingly being seen as a viable asset
for mainstream portfolios, according to Philippe Laffont.
The founder of tech-focused hedge fund
Coatue Management explained the reason why markets have had a change of heart
about BTC as he spoke at Coinbase’s
State of Crypto Summit last week.
At the time of writing, Bitcoin is
trading at north of $105,000, which is more than 50% above its year-to-date low
on April 9, only days after President Trump’s tariffs announcement.
Lower volatility is increasing institutional support for Bitcoin
According to Philippe Laffont, institutional attitude towards
Bitcoin is improving mostly because the asset’s volatility, which historically
deterred firms like Coatue from building a position, is now declining, and that
too, significantly.
“It’s intriguing to me that maybe … the
cost of getting into BTC is shrinking, he said, referring to the asset’s beta –
a measure of its volatility relative to the broader market. Lower beta, in his
view, is making Bitcoin more accessible and even attractive for cautious
investors in 2025.
Additionally, the growing presence of
institutional names, particularly big ones like BlackRock,
that’s even launched a Spot Bitcoin ETF is being seen as a
major sign of maturity in the crypto space.
Once a fringe asset, BTC is now being legitimized by major
financial institutions, which is helping reduce perceived risks, Laffont added.
Comparative performance is also
contributing to changing investor perceptions – Bitcoin has demonstrated
relative resilience in recent macroeconomic shocks.
For example, when markets reacted
to President
Trump’s tariff announcement in April, Bitcoin lost only 5% versus a
wider 6% decline seen in the Nasdaq Composite.
This decoupling from traditional
tech-heavy indices suggests BTC may now offer diversification benefits rather
than simply tracking risk-on sentiment.
BTC long-term holding behaviour signals growing confidence
Another telling indicator is how
investors are treating their holdings after buying Bitcoin, Laffont noted as he
addressed the Summit.
The number of wallets that held bitcoin
for over a month and then sold out entirely has declined significantly, which
implies a shift toward a long-term investment mindset among holders, rather
than speculative day trading.
Bitcoin currently makes up less than 1%
of the global net worth. According to Philippe Laffont, if the assets continue
gaining credibility, “it has to become more central” to diversified portfolios.
While he once overlooked the
cryptocurrency’s potential, Laffont now embraces one of its simplest
characteristics: “As long as other people think it’s valuable, it gets more
valuable over time.”
Bitcoin is currently up nearly 100%
versus its 52-week low, but the hedge fund manager continues to see significant
further upside in the world’s largest cryptocurrency by market cap.
He concluded on a rhetorical question:
“why wouldn’t everyone have one, two, three or 4% of assets in Bitcoin that
… protects
you against inflation?”
(As with any of these informative articles, anyone who needs someone to talk to about
this
very subject contact me and I can direct you to a knowledgeable advisor).
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