Since its launch in 2009, Bitcoin has graduated from being a common financial asset to become one that most investors run to in times to trouble. Despite the visible volatility that has often interacted with the price of the digital asset, investors, as well as traders, are still using the digital asset to hedge their funds.
This latest development has seen major investors in the market ditch various high flying assets to put their funds in the leading digital asset. Bitcoin and other digital asset have seen massive movements in the market to push its total market cap to a region around $571 million. While major assets have been recording significant wins, XRP is the only asset that has seen a loss around 7% to close up trading day yesterday.
Investors clinging on to Bitcoin as XRP makes a decline
Despite several assets in the crypto market making a massive move save for XRP, a new report has shown that major wealth managers have noted that they prefer to keep their funds in Bitcoin rather than any other digital asset. In a survey that was carried out among wealth managers, most of them said that they were going to pick Bitcoin in their place. The official result of the survey put Bitcoin in the third position, coming behind Long Tech and Short United States Dollars.
In an explanation of the “Long Tech” and “Short US Dollars” term, the Bank of America Fund explained that Long Tech meant that most of them bet on values of tech assets to rise on the long term while the Short US dollar meant that they expect the price of the dollars to decline.
As reported by several news outlets, the United States dollars have witnessed a significant loss against various assets in the financial market. Investors are now rushing in to invest heavily on tech stocks in a bid to cut their losses short this year.
Traders and investors are looking forward to the next stimulus check
The loss that the dollar is currently recording is a plus on Bitcoin’s part as the digital asset has recorded massive gains over several months as said by analysts at JP Morgan. With Massachusetts Mutual Fund investing about $100 million into the leading digital asset, analysts believe that this will usher in the reality where several pensions and insurance outfit will invest in the digital asset.
The last time that Bitcoin received this kind of praise from Wall Street, most people are aware of what follows suit. Even though most people believe that the kind of surge that happened with Bitcoin in the past will not happen again, the digital asset might still record a surge close to the one that happened in 2017.
As it stands now, traders and investors in the crypto market will be looking forward to the next round of stimulus package that will be distributed around the United States after talks between the Republicans and the Democrats. According to an analyst at Goldman Sachs, it is likely that the Congress will agree to pass the $700 billion package which signifies (3.3%).
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