- Bitcoin price performance is continuing to attract several firms
- Will Hobbs claims that the leading crypto token sounds cultist increasingly
- Barclays Wealth Management was clearly steering of BTC due to price swings
- Fear of inflation is helping Bitcoin get mainstream
Bitcoin prices seem to be attracting several more prominent names towards the asset. According to Will Hobbs, the chief investment officer of Barclays Wealth & Investments, the flagship cryptocurrency sounds cultist increasingly. Additionally, it could prove to be a flightless bird if the rate of interest continues to surge. Moreover, Hobbs revealed that the wealth manager is not interested in Bitcoin, despite its recent record-breaking price rally. Simultaneously, the flagship crypto token seems backed by a lot of magical thinking.
Bitcoin price has attracted firms from Tesla to BlackRock
Last week, the Bitcoin price was observed soaring to surpass the level of $55k. The performance of the crypto token is attracting several larger institutions since Q3 2020. Continuing interest from firms like Tesla and BlackRock has helped to pump the rally.
Still, several small investors seem to have continued to act as major drivers, as per analysts at JPMorgan. The analysts at JPMorgan have also observed that there have been minimal large flows over the last five months.
Barclays Wealth Management was clearly steering of BTC
According to Hobbs, the wealth manager was steering clear of the digital currency. The move comes mainly after observing the wild swing of Bitcoin price. Additionally, the leading crypto asset multiples more volatile than the wealth manager’s most of white-knuckle-ride asset class.
Hobbs also mentioned that it has to satisfy two things for a crypto asset to make it into its asset class toolkit. First of all, the asset should have a positive expected return, and the other should have some diversification appeal. Indeed, there are expectations that the crypto token will satisfy both the condition over time. However, for now, it is tough to consider anything.
Fear of inflation making Bitcoin more attractive
Over the last few weeks, few firms have warmed to Bitcoin and cryptocurrencies. According to Rick Rieder, BlackRock’s chief investment officer, the clients of the firm were seeking for alternative store of value. The search came due to the fears of inflation, and individuals began looking for places that could appreciate under the assumption that inflation moves higher. Indeed, following the building debts, the firm started to dabble a bit into Bitcoin price. Following the current scenario, Hobbs highlighted that it is too early to consider the exact nature of the coin designed by Satoshi Nakamoto.
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