Bitcoin Hits $24k, Sets New ATH; Billion-Dollar Investment Fund Sells Gold For Bitcoin

Bitcoin managed to hit a brand new ATH when it surpassed $24k a few hours ago.

As Coindesk notes, with the latest price increase, bitcoin’s year-to-date percentage gains have grown to over 225%.

At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $23,406.27.

Billion-dollar investment firm invests in BTC

It’s been recently revealed that a top executive at Jefferies says the billion-dollar investment firm is cutting some gold from its portfolio in favour of Bitcoin.

BTC is currently consolidating above $20k and the global head of equity strategy at Jefferies, Christopher Wood, said that the company is purchasing BTC at the expense of the precious metal.

It’s been revealed that the firm is converting some gold holdings in the long-only global portfolio for the US dollar-denominated pension fund which was created back in 2002, says Business Standard.

Wood plans to increase exposure to crypto in this portfolio if the market sees a correction after the recent pump.

“The 50 percent 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. 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,” according to official notes.

Weiss Ratings analyst talks Bitcoin

The online publication Weiss Rating analysts Juan Villaverde and Bruce Ng suggest that Bitcoin could have a much larger upside if other companies like Jefferies begin to favour such asset classes equally over bonds as a hedge against inflation and economic turbulence.

“…Roughly $30 trillion is sitting in government bonds. Suppose 10% of that amount finds its way into gold and Bitcoin. That works out to an exodus of $3 trillion. And if that is split evenly, we’d end up with…” he said.

He continued: “$1.5 trillion going into gold – which is 15% of gold’s market cap (now about $10 trillion). And…$1.5 trillion going into Bitcoin – which is 4.4 times its market cap (now about $338 billion).”

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