EC Millions Of Dollars Entering The Cryptocurrency Market Ahead Of A New Bull Market

Bitcoin (BITCOMP) is attracting a lot of attention from large companies. According to the recent report published by the Fidelity Investments' cryptocurrency department, almost 60% of the surveyed investors believe that digital assets have a place in a portfolio. Square, Stone Ridge, MicroStrategy, and the likes turn to Bitcoin to protect their assets from inflation, diversify portfolios, or get ready for an imminent money revolution.

JPMorgan, known for its critical approach towards digital assets, admitted that Bitcoin has a lot of potential. At the same time, the recent investments announced by large companies can be interpreted as a vote of confidence.

Whatever the motives behind their BTC investments, they signal that big business spotted the advantages of the new investment tool and now pivoting to it, paving way for the cryptocurrency mass adoption. 

Bitcoin is a safe haven

Bitcoin is less vulnerable to the economic woes that may plague other asset classes in the nearest months and years, Fidelity states. They pointed out that digital assets investments allow hedging the risks associated with traditional investments and get exposure to non-traditional returns. 

The careful and informed use of alternative investments in a diversified portfolio can reduce risk, lower volatility, and improve returns over the longterm, enhancing investors' ability to meet their return outcomes.

The experts pointed out that Bitcoin is an easily accessible, liquid, and low-cost investment that can significantly enhance portfolio performance. According to the research, even 3% of Bitcoins in the investment portfolio would have increased the annual returns by over 4% from 2015 to 2020. 

Summary portfolio metrics

(Click on image to enlarge)

Source: Fidelity Investments

Meanwhile, the former hedge fund manager Raoul Pal believes that cryptocurrency is the only answer to what the global central banks are doing.

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William K. 2 weeks ago Member's comment

With Bitcoin being an alternative currency I am wondering who sets the value of it, by what authority they do set that value, and how that value is determined. Certainly those answers determine how wise it is to invest in that alternative currency. But it seems that I must be missing something rather important here.