Bitcoin is Reshaping Institutional Investment Strategies
The latest report suggests that Bitcoin is going to reshape the mode of institutional investment strategies. The report was penned in association with Crypto Research suggested that Institutional investors may edit their investment strategies in terms of decision-making based on Bitcoin integration into traditional investment products tailored for institutional investors.
The report also took important factors such as Bitcoin’s price performance, strategic significance, and institutional inflows while addressing various challenges and opportunities associated with the digital asset.
The report also takes a detailed view of the distinctive market behavior of Bitcoin such as allocation strategies and investment timeframes. At the same time, the report considered the balanced approach of Bitcoin in terms of price volatility against gains.
Furthermore, the report highlighted the position of Bitcoin for adding to the portfolio diversification of the asset class. Additionally, the report shed light on the global regulatory development for Bitcoin that holds significant importance for institutional investors.
For 2014-2023 60/40 asset allocation portfolios without Bitcoin generated a 71% returns. However the report suggests that the addition of 5% Bitcoin to the same portfolio boosted the profits to 157% yield.
Institutional Investment in Bitcoin
The report that was published in association with analysts from Cointelegraph shared an overview of the structural aspects of institutional investment in Bitcoin. The report suggested that firms are likely to leverage the technical and operational factors associated with Bitcoin for adding to the traditional portfolios.
At the same time, the analysis discussed the importance of security measures and compliance with international regulatory standards.
At the same time, the report also highlighted the technical and financial aspect of Bitcoin that consolidates its place in future development of the financial sector. The analysts noted that Bitcoin has a forward-looking perspective regarding the evolution of digital asset products and services within the blockchain industry.
As projected by Bloomberg ETF analysts, SEC approved the spot Bitcoin ETF application by 11 asset management firms on 10th January, 2024.
Bitcoin Price Movement
Bitcoin prices underwent a sharp decline last week incurring 15% decline. Analysts highlight a liquidity crunch on 15th January, on account of over booked liquidity. On this account, data projections from TradingView and Cointelegraph Markets Pro predict a $43K price point before resuming of price volatility.
Popular Bitcoin investors Skew posted that spot markets did not retain stability on a short term basis on account of limited liquidity.
He opines that above $42.8K bulls have a chance to take over while below the range bears may leverage open market. The analysts suggested that $43K point was driven by the derivatives market and was likely to be unsustainable. Another analyst, Mattew Hyland noted that the 15% decline of last week may take a month to recover.
The analysts also projected sideways price movement of Bitcoin based on trading volume fluctuations. He suggests that the 3-4 week consolidation period could be good for altcoins based on historical price movements. Crypto analyst Rekt Capital noted that bears have a very small window to affect Bitcoin prices two months before the April halving in 2024.
He further suggested that Bitcoin is still trading in the weekly range. He also suggested that if Bitcoin is going to attempt a deeper retrace before the halving event, it will become visible during the next 30 days.
