Pimco plans to gradually invest more in crypto after Bitcoin smashes all-time high

• Asset manager Pimco is planning to increase its exposure to the new asset class after dabbling in cryptocurrency-linked securities.
• The firm will gradually increase its exposure to Bitcoin and other digital assets as part of its trend-following strategies.
• The company highlighted that decentralized finance could be disruptive to the financial industry and the firm plans to stay competitive in the field.

Following Bitcoin reaching its all-time high above $67,000 on October 20, fixed income manager Pimco is planning to increase its exposure to digital assets. A representative of the firm said that the company has plans to gradually increase its exposure to the new asset class.

Pimco prepared to stay competitive in the rapidly changing environment

Pimco, one of the world’s largest asset managers with a focus on fixed-income securities, has dabbled in cryptocurrencies and plans to increasingly invest in more digital assets that have the potential to disrupt the financial industry. 

Chief Investment Officer Daniel Ivascyn said that the firm is now looking at potentially trading certain cryptocurrencies as part of the company’s “trend-following strategies or quant-oriented strategies.” According to Ivascyn, this would be a gradual process as the firm continues to speak to investors while working on internal diligence. 

The chief investment officer added that some of Pimco’s hedge fund portfolios are currently already trading digital asset-linked securities. 

The asset manager, with $2.2 trillion in assets under management revealed its cryptocurrency plans following Bitcoin’s all-time high above $67,000 on October 20, shattering its previous record high in April. 

The entire cryptocurrency market capitalization also reached a new high at above $2.63 trillion also following the first US Bitcoin futures exchange-traded fund (ETF) that was launched on October 19. 

Ivascyn also highlighted that decentralized finance (DeFi) will be disruptive and could “very well disrupt” the financial industry. The firm believes in preparing for scenarios in which the company would be competitively prepared to deal with a rapidly changing environment. The total value locked in DeFi protocols recently soared to a new record high as well, hitting above $233.8 billion amid rising token prices.

Bitcoin price eyes $77,000 next after retracement

Bitcoin price shattered its previous all-time high, reaching above $67,000 on October 20 following the first Bitcoin ETF approval in the United States.

The bullish sentiment sent Bitcoin price soaring, hitting the upper trend line of the ascending parallel channel pattern on the 12-hour chart.

Currently, Bitcoin price may retest crucial support levels before resuming its climb higher. The next target for BTC is at the topside trend line of the upper parallel channel at $77,354, coinciding with the 127.2% Fibonacci extension level. 

BTC/USDT 12-hour chart

The middle boundary of the prevailing chart pattern may act as immediate support for Bitcoin price at $63,728, then the next line of defense is at the lower boundary of the channel at $60,229, coinciding with the 21 twelve-hour Simple Moving Average (SMA).

 

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