Fund manager Christopher Wood is even going so far as to liquidate some of his precious gold to invest in the king of cryptomoney. So what happened?
„The current 50% allocation to physical gold bullion in our portfolio will be reduced, for the first time in several years, by 5 percentage points, and that money will be invested in Bitcoin. And should there be a large correction [in prices] for Bitcoin Bank from the current level, after this historic break above the $20,000 level, our intention will be to add [even more BTC] to that position.»
Christopher Wood is the global head of equity strategy for the leading investment bank Jefferies Group.
According to a revelation in the business newspaper Business Standard, Christopher Wood announced that he is reducing his investment fund’s exposure to gold and buying bitcoins instead.
In a note to investors, the manager explains that :
Not only has Jefferies already decided to sacrifice 5% of all these assets to invest in Bitcoin at the current price, but this would only be the beginning. Provided the current euphoria subsides a bit, with a price retracement (which statistically has a good chance of happening).
Nevertheless, Christopher Wood is far from denigrating gold metal. In fact, Bitcoin and gold are both seen as a winning pair against the uncontrolled actions of central banks and their fiduciary currencies.
„That doesn’t mean we’re going to give up gold. In fact, the yellow metal is expected to rise again if the Fed (the US Federal Reserve) remains in Dove mode [dovish = pro money printing] (…). »
If Christopher Wood was, until recently, reluctant to invest in Bitcoin, it was because he feared the stories of massive hacking, but not only that! It’s also because he was afraid that the king of cryptos would eventually be declared illegal, because of the malicious actors and other illicit trafficking that were soliciting it as a means of payment.
With the arrival of solutions dedicated to institutional customers (with ultra-secure guard services) and the regulations that are gradually being put in place to regulate crypto-actives, it was now time for Jefferies to make a purchase on Bitcoin.
We’ve been warned. From now on, if the price of BTC drops slightly, big investors will be ready to take advantage of it to strengthen. Although many in the cryptosphere have been hoping for this for a long time, the fact that institutional investors now seem to be creating buying pressure on Bitcoin is nice to see.