Oct 13, 2020 at 20:26 UTCUpdated Oct 14, 2020 at 04:37 UTC.CORRECTION: This article originally said Fidelity recommended that portfolios consider a 5% allocation in bitcoin.
Fidelity Digital Assets said bitcoin's market cap has plenty of room to grow in a Tuesday report on the benchmark cryptocurrency's uncorrelated nature.
Director of Research Ria Bhutoria wrote that the crypto's current market capitalization "Is a drop in the bucket compared with markets bitcoin could disrupt."
Bhutoria argued that while institutional inflows may damp bitcoin's uncorrelated performance, the crypto is "Fundamentally less exposed" to the "Economic headwinds" that other assets will likely face.
Bitcoin is therefore a "Potentially useful" asset for uncorrelated return-seeking investors.
"In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher," the report said.
Fidelity Report Says Bitcoin's Market Cap is 'Drop in the Bucket' of Potential
Udgivet den Oct 13, 2020
by Coindesk | Udgivet den Coinage
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