What is protecting an investment portfolio from potential stock market volatility? As per Bloomberg Intelligence’s Mike McGlone, a merged exposure of Bitcoin (BTC), ゴールド, and government bonds.

The senior commodity strategist, who sees BTC heading to $100,000, pitted derivatives in a new report representing the three safe-haven assets against the performance of the S&P 500 index, finding that the trio has been outperforming the benchmark Wall Street index at least since the start of 2020.

Bitcoin-Gold-Bonds performance against the S&P 500 index. ソース: ブルームバーグインテリジェンス

The Bitcoin-Gold-Bonds index took data from the Grayscale Bitcoin Trust (GBTC), SPDR Gold Shares (GLD) and iShares 20+ T- Bond ETF (TLT). The three funds enable investors to gain exposure in the market without requiring to hold/own the physical asset.

Bitcoin more profitable than gold and bonds

McGlone noted that Bitcoin did some heavy lifting in making investorsrisk-off strategy successful, adding that their portfoliosappear increasingly nakedwithout the flagship cryptocurrency even if they remain exposed to gold and bonds.

The statement took cues from the performance of Bitcoin, ゴールド, and the 10-year US Treasury yield against the prospect of rising quantitative easing and debt-to-GDP levels. 3月以降 2020, Bitcoin has risen almost 1,190%, which comes to be extensively better than spot gold’s 25.93% スパイク.

BTC/USD weekly price chart. ソース: TradingView.com

その間, アメリカ. 10-year bond yield has jumped from its record low of 0.33% に 1.326% in the same period.

しかしながら, despite a healthy spike, the returns on the benchmark government bond have come to be lower than the core U.S. inflation of 5.4%, suggesting that investors who hold bonds as safety against risky equities are making an inflation-adjusted loss.

US consumer price inflation rose to 5.4% 7月に. ソース: Forex Live

結果として, lower yields have created avenues for corporates to borrow at meager rates for expansion, thus giving equities a boost. さらに, investors in the secondary markets have started moving their capital into non-yielding assets like Bitcoin and gold, anticipating higher payouts.

Yield rebound ahead?

Former bond investor Bill Gross, who built Pimco into a $2 trillion asset management firm, noted that bond yields havenowhere to go but up.

The retired fund manager said that the 10-year U.S. Treasury note yields would rise to 2% 次の 12 月. したがって、, bond prices will fall due to their inverse correlation with yields, resulting in a loss of about 3% for investors who bought debts all across 2020 そして 2021.

Federal Reserve purchased 60% of net US government debt issuance over the past year with its $120 billion a month asset purchase program to boost the US economy. しかしながら, 8月に, アメリカ. central bank announced that it would slow down its bond-buying by the end of this year, given the prospects of its 2% inflation rate target and economic growth.

“How willing, したがって、, will private markets be to absorb this future 60 per cent in mid-2022 and beyond,” questioned Gross, adding that the US bond market would turn into aninvestment garbage.

Intermediate to long-term bond funds are in that trash receptacle for sure.”

Rising rates could threaten to draw capital out of overvalued U.S. 株式. 同時に, as a risk-off trade, funds could also start flowing into the Bitcoin market. Julian Emanuel, the chief equity and derivatives strategist at brokerage firm BTIG, shed light on the same in his interview with CNBC in February. Excerpts:

This is the environment where that catch-up trade is going to show its ability […] You’re coming from such a low absolute level of rates that higher rates actually is likely to be supportive for alternatives like Bitcoin.

関連: 3 reasons why a Bitcoin ETF approval will be a game changer for BTC price

To McGlone, the capital inflow into Bitcoin and the rest of the cryptocurrency market, イーサリアムを含む, would be about finding the next-best investment opportunity. He said that digital assets may represent thehigher-beta potential,” 追加する:

We see Ethereum on course toward $5,000 そして $100,000 for Bitcoin.

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