- A shifting paradigm begins as potential career risks await fund managers without Bitcoin in their portfolios.
- Technical indicators show that BTC price might take a nosedive while the long-term outlook remains bullish.
Some of the most prominent fund managers are starting to realize the consequences of not having Bitcoin in their portfolios. As the US dollar weakens because of the Fed's policy of printing money, the flagship cryptocurrency is thriving as a haven from inflation.
Institutional investors FOMO into Bitcoin
There seems to be an exciting twist of events in the financial scene as ownership of Bitcoin is slowly turning into a requisite condition for top fund managers. This change in narrative contrasts with the past, where wealth managers perceived investment in digital currencies as risky.
In an interview with CNBC, the CEO of Coinshares Danny Masters said that the absence of Bitcoin in any investment manager's portfolio has become a carrier risk.
"That is perfectly well-stated, you're not going to get fired anymore if you had some Bitcoin, but you might get fired if you didn't."
Indeed, Bitcoin's upside potential remains strong as it gains recognition among renowned institutional investors who are using it as a hedge against inflation. One of the many metrics that has caught the attention of enterprise market participants is the hash ribbon indicator.
This on-chain index forecasts that BTC is about to enter a new parabolic advance. Accordingly, miners have capitulated because it is too expensive to mine more tokens relative to the cost of mining. When this happens, the momentum of Bitcoin price changes from negative to positive, indicating a considerable buying opportunity.
Hash Ribbon Indicator
Historical data shows that Bitcoin price has always rallied after this indicator flashes a buy signal.
For instance, after the 30-day moving average of the hash rate crossed above the 60-day moving average in late April, BTC shot up by more than 36%. A similar price action took place in mid-July, which saw the pioneer cryptocurrency rise by more than 100%.
Hash Ribbon Indicator's Historical Data
Whether or not this bullish signal is a self-fulfilling prophecy, the rapid growth of miners and investors' participation is a clear sign that Bitcoin is set for new highs in the long term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.