Investment Giant Sees Bitcoin as Key Inflation Hedge
In recent times, Bitcoin (BTC) has gained support from traditional financial institutions as an inflation hedge and investment opportunity.
Jefferies’ Global Head of Equity Strategy, Christopher Wood, cautioned about the challenges major central banks, including the Federal Reserve, face in exiting unconventional monetary policies.
A turbulent exit could benefit Bitcoin and gold holders by undermining the US dollar’s dominance.
Jefferies highlighted that despite concerns of a US recession, economic indicators suggest an impending downturn. Monetary tightening efforts may be delayed due to the significant money supply expansion since 2020. Investors are encouraged to view Bitcoin and gold as insurance against economic uncertainties.
Jefferies recommended a 10% Bitcoin allocation for long-term US dollar-based global investors, including pension funds. They integrated Bitcoin into their global portfolio alongside gold, gold mining stocks, and Asian equities.
Jefferies’ endorsement represents a milestone, legitimizing Bitcoin as a store of value and asset class amid evolving monetary policies and economic uncertainty.
Attention is also on the Securities and Exchange Commission (SEC) for potential approval of a spot Bitcoin Exchange Traded Fund (ETF). This could further influence traditional entities’ entry into the crypto market.