Bernstein believes that Bitcoin could eventually replace gold’s role. Analyst Gautam Chhugani wrote: “We expect Bitcoin to become the premier ‘store of value’ asset in the new era, eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocations and the standard for corporate financial management.” in a note Thursday. The comments came after Bitcoin topped $100,000 for the first time, extending its gains in 2024. The digital currency is up 141% so far this year. Much of this gain has been made since the November 5 U.S. election, with investors betting that the incoming Trump administration will be friendlier to the cryptocurrency industry. Bernstein expects Bitcoin to reach $200,000 by the end of 2025. DA Davidson’s Gil Luria wrote that he believes “Bitcoin’s primary current application is as a store of value—an appreciating, low-correlation asset that could replace gold as a hedge against declining economic stability.” Although Bitcoin Prices currently have low correlations with rising inflation but higher correlations with other risk assets — unlike gold, which is considered a safe haven and inflation hedge — Luria believes Bitcoin “ “It’s primarily driven by adoption,” which he believes is “loosely tied” to what’s driving the market. Some of the factors analysts pointed to include employment, regulation, tax policy and globalization, Luria said. There is still a long way to go before coins are widely accepted as a medium of exchange and unit of account.
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved