Bitcoin Breaks Above $24,000, Another Company Cut Down its Gold Exposure by 50% in Favor of BTC

It is the weekend, and Bitcoin is pumping again.

After breaching $20k on Wednesday then breaking into a new all-time high on Thursday, Bitcoin has broken above yet another level today.

Bitcoin surpassed $24,000 but with only $4.48 billion in ‘real’ volume, now up 120% in quarter fourth of 2020

“We are extremely bullish. Our confidence in it has gone up since 2017,” said Cathie Wood, founder of Ark Investment Management. According to her, the world’s largest cryptocurrency is “the flight to safety currency.”

After the last bull run and the following bear market of 2018, when Bitcoin’s share of the crypto-asset ecosystem moving from the low 30 percent range in terms of network value into the low 70 percent range, it confirmed that BTC “is the reserve currency of the crypto-asset ecosystem,” said Wood in her interview with Bloomberg.

Keep on Stacking Sats

Amidst this wild rally, Christopher Wood, a global head of equity strategy at Jefferies, a global investment banking firm, also jumped into Bitcoin by cutting down his gold exposure in his long-only global portfolio for US dollar-denominated pension funds established at the end of Q3 of 2002.

“The 50% weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin,” Christopher wrote in his weekly note to investors. But it is not all; they are further planning to stack more sats as Christopher said,

“If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”

Given that BTC has increased more than 231% in value this year, getting hilariously rich, it makes sense that everyone is feeling the FOMO.

Despite trimming down his precious metal holdings, Jeffery is still bullish on yellow metal as long as the central bank continues its ultra-loose monetary policy.

“This does not mean that GREED & fear is going to give up on gold. And the yellow metal should rally again if the Fed stays dovish in the face of the dramatic cyclical recovery that is coming on the other side of the pandemic, in line with GREED & fear’s base case.”

Tides will Turn

Bitcoin is the shining star of 2020 as every other day; a new institution gets out of the woods to jump on the bitcoin bandwagon.

And this interest from institutional investors over the last couple of months, who are driving this market and not retail, is what sets it apart from the 2017 bull market.

“There is definitely a huge uptick in institutional adoption,” said Spencer Bogart, general partner at Blockchain Capital, in an interview, adding we’re “not seeing the same uptick across retail.” Compared to the last bull market,

“retail awareness of this rally in 2020 is still relatively muted. Now I think the tides will turn and we're going to have both sides of the market kind of participate here.”

Bogart further pointed to PayPal allowing its 380 million users the ability to buy, sell, and hold crypto, which means “it's hard to see how we don't go from 100 million users currently to a billion over the next few years.”

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