Key Takeaways
- Investors must include bitcoin in their investment portfolio, says Bloomberg strategist
- Mike McGlone notes that Bitcoin has outperformed the S&P market index in the past 12 months
- Institutions continue to accumulate Bitcoins
This latest opinion is from Mike McGlone, a senior strategist in Bloomberg, as indicated in a new report.
The investment strategist analyzed the Grayscale Bitcoin Trust, an institutionalized fund that allowed investors to gain exposure to the bitcoin market without holding the asset.
According to McGlone, the leading cryptocurrency is on the path to $100,000 and bodes well as an investment tool alongside Gold and Bonds.
In addition, he noted that the three assets had outperformed the popular S&P 500 index in the past year.
The report also added that the bullish run of Bitcoin towards the end of the year had helped investors’ portfolios from suffering significant losses.
McGlone concluded that investors that do not have Bitcoin are exposed to the turbulent market conditions.
Reports like this show the potentials of bitcoin as digital gold. Bitcoin is increasingly becoming popular among institutions that hold it as a hedge against inflation.
Increasing regulations on digital assets have also helped improve acceptance among institutions.
Tesla, the leading electric car manufacturer, revealed earlier in the year that it had purchased $1.5 billion worth of BTC.
Microstrategy and Grayscale are also two investment firms that have regularly purchased BTC in large volumes.
There is a belief by some quarters that the entry of institutions within the BTC market is a good thing for the coin.
This is because institutions bring stability, and Bitcoin’s massive volatility could be a thing of the past.
Nevertheless, the current market sentiments suggest that the leading coin could be on its way to $100k before the end of the year.
What are your thoughts on the Bloomberg analyst’s report?
