The most popular cryptocurrency, bitcoin (BTC) has become a mainstream hedge as a store of value – for a diversifying set of investors, experts have claimed, with altcoins also set for a retail boost further down the line.
A broadening tranche of analysts and industry insiders are adding their voices, as Jeff Currie, the Head of Commodities Research at Goldman Sachs, told Bloomberg TV,
“[We] have seen on numerous companies buy bitcoin as part of a treasury because they see it as a hedge against inflation. So I think many people are now seeing it as that.”
This kind of “positioning” toward bitcoin is “particularly” coming “from a lot of the more traditional financial” firms “or corporates,” he concluded.
The experts were speaking as BTC and altcoins appear to be correcting their gains, with BTC now consolidating after failing to clear the USD 23,200 mark today.
At the time of writing (15:59 UTC), BTC trades at USD 22,550 and is down by 3% in a day, trimming its weekly gains to 24%. Meanwhile, other cryptoassets from the top 10 club are down up to 6% today.
Industry insiders have been having their say, too.
Philip Gradwell, the Chief Economist at blockchain analysis firm Chainalysis, wrote in his newsletter yesterday that he expected to see “significant swings in the price over the next few days as the market tries to find a balance between demand and supply.”
However, he expressed no shortage of optimism, adding,
“With its price sitting firmly above USD 20,000, its next goal seems to be the USD 25,000 mark. Meanwhile, USD 20,000 could become the coin’s new strong support level. With only two weeks remaining before the end of the year, many assume that the rally will be short, but impactful.”
However, he warned that sharp correction is also possible, “considering the time of the year and the upcoming winter holidays.”
“[Regarding] retail interest in bitcoin, it is natural for retail traders to take an interest after an all-time high is broken. Only once bitcoin settles down in new price ranges can we expect retail interest to be directed towards altcoins.”
As reported earlier this year, major crypto exchange Coinbase claims that although most of its users initially favor BTC, the vast majority also go on to trade altcoins.
“Among customers with at least five purchases, 60% start with bitcoin but just 24% stick exclusively to BTC,” they said back then, adding that as people feel good about their initial crypto investments in bitcoin, they branch out to find other possible categorical winners, while BTC remains most investors’ safety net of choice.
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Learn more:
More People Seem Interested in Buying Bitcoin (and Ethereum) Than Selling It
Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, Chainlink Price Predictions for 2021
Exchanges Send More USD 1M Bitcoin Transfers as Investors Look For a Hedge
This Bitcoin Cycle Is ‘Right On Track’ With ‘Striking Similarities’
(This article was updated at 17:01 UTC to add an interview with BitGo CEO.)
