Economist Urges Traditional Finance to Embrace Bitcoin Now
Renowned economist and cryptocurrency analyst Alex Krüger suggests that traditional finance (TradFi) firms face a crucial decision regarding Bitcoin (BTC).
Krüger, asserts that portfolio managers in TradFi risk lagging behind if they fail to acquire Bitcoin promptly.
He outlines three options for traditional finance portfolio managers – immediate acquisition of Bitcoin, delayed acquisition of Bitcoin or underperformance over the next decade
Krüger references data from Goldman Sachs indicating that Bitcoin has consistently outperformed other financial assets in terms of both total return and risk-adjusted return, as measured by the Sharpe Ratio.
Bitcoin. Nailed it once again. People in Tradfi not paying attention better bury their egos and start learning. pic.twitter.com/t7DJCFDonN
— Alex Krüger (@krugermacro) March 29, 2024
Krüger emphasizes the need for those in TradFi to set aside their reservations and adapt to the evolving landscape, given Bitcoin’s demonstrated performance.
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Despite recent price corrections in Bitcoin and various altcoins, Krüger suggests maintaining a long position at least until the BTC halving event, which reduces miners’ rewards.
He highlights the significant inflows into Bitcoin exchange-traded funds (ETFs), suggesting that this trend is still in its early stages and is driving considerable market activity.
Krüger acknowledges the market’s volatility but advises staying invested, as the most lucrative opportunities often emerge during periods of extreme volatility.
In summary, Krüger advocates for a strategic approach to navigate the current market dynamics, emphasizing the potential for substantial gains in the midst of market turbulence.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
