For many years, investors preferred gold and government bonds against market uncertainties as a safe port. However, financial markets, geopolitical tensions and increasing systemic insecurity, which are open 24/7 on a global scale, have questioned this approach. Especially the performance of crypto currencies such as Bitcoin reveals a remarkable transformation compared to traditional investment instruments. Great economic shocks in recent years bring a radical restructuring in the investment approach.
Bitcoin’s performance is forcing tradition
In the past, portfolio management was often based on 60 %stock and 40 %fixed -oriented securities. In recent years, however, this formula has begun to stretch against the developments in the crypto currency market. Since the COVID-19 pandema, the price of Bitcoin has increased by more than 1000 %. In the same period, long -term government bonds and gold were forced to offer the protection expected by investors.
The fact that Bitcoin was initially perceived as a risky being due to its high volatility changed over time. In some periods, BTC, which acts similar to technology shares, attracted attention by showing a more resistant stance in some moments of crisis. In particular, different price movements were observed during COVID-19 crisis, banking tremors and Japanese new Carry Trade dissolution. Although Bitcoin was sometimes a leverage investment, he was sometimes more intact than traditional beings.
Changing financial perception and position of Bitcoin
According to the assessment of Nydig Research, crypto currencies such as Bitcoin, which are independent and non -sovereign of political influences, may be advantageous in today’s complex global environment. In particular, the aggressive monetary policies of the central banks and the increase in geopolitical risks shadows the charm of classic safe ports such as gold and bonds. Bitcoin, on the other hand, is settled in the alternative position with its global liquidity, censorship and impartial structure.
Investors are no longer in search of low volatility. Qualifications such as durability, impartiality and ease of processing have started to be effective in choosing assets such as Bitcoin. In addition, the increase in long -term interest rates led bonds under pressure, while Bitcoin’s risk -adjusted return reached equivalent levels with traditional assets in some analyzes.
According to experts, Bitcoin’s previous tested bottom levels may be possible support points in the future. This shows that while rethinking the portfolio structure of investors, Bitcoin is no longer excluded and the strategic importance of the crypto currency market is noticed.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
