Jefferies’ Wood Continues To Dump Gold For BTC
Christopher Wood, worldwide Head of Equities Strategy at international financial solutions company Jefferies Group, has cut his investment in gold in his Asia-ex-Japan holdings by 5% in preference to Bitcoin, according to the Business Standard. This looks to be the latest indication that the precious metal’s appeal as an inflation hedge is fading.
Earlier this month, Jefferies, which has $440 billion in equity under supervision, announced that it was reducing its investment in gold for the very first time in many years in an attempt to dabble its toes into the biggest virtual currency. When Bitcoin’s value was approximately $22,000, it made a 5% allotment to the biggest virtual currency available at the time.
Wood stated in April that he was “very positive” about the top coin as a result of the worldwide loose monetary scheme. Moreover, he stated that the biggest cryptocurrency has now become “profitable in the long run” for financial institutions. As a result of the October debut of the world’s first Bitcoin derivatives exchange-traded fund, the New York-based financial behemoth decided to boost the ante.
Bitcoin has gained 114% year to date, but the yellow metal has lost 6.43% over the same timeframe, despite the fact that the conventional, relatively secure asset is benefiting from a number of favorable factors. After failing to recapture its latest all-time peak, the cryptocurrency monarch is currently trading over $61,000.
PayPal’s Peter Thiel Sees Rising Bitcoin Prices As Proof Of Inflation
Bloomberg says that tycoon PayPal co-founder Peter Thiel expressed his opinion earlier this month, stating that the nearly record high Bitcoin values imply that inflation is not a transient phenomenon, as reported by the financial news site. However, the tech tycoon thinks that Bitcoin is not truly a positive investment at the current price: “You know, $60,000 Bitcoin, I’m not convinced it’s something that should be purchased enthusiastically.”
Last month, Thiel referred to high cryptocurrency prices as “the canary in the coal mine,” arguing that they were an ominous omen for the existing regime’s continued existence. The billionaire has recently criticized the Federal Reserve of the United States for looking the other way on inflation.
The Chairman of the Federal Reserve, Jerome Powell, has stated that it may take even longer for strong inflation readings to decline. Nonetheless, Powell is confident that the central bank will use a variety of tools at its disposal to return it to the 2% level: “There should be no question that we will use our tools to bring inflation back down to 2 percent,” says the Chairman.
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