Last week, Bitcoin closed over $ 10,000 almost two months after falling below $ 4,000 on a global sellout.The cryptocurrency found its jumping shoes in a variety of bullish theses, ranging from deflation-friendly “halving” to the Federal Reserve’s open stimulus package. The upward performance has even prompted Paul Toden Jones, a legendary hedge fund manager, to add Bitcoin to his $ 22 billion portfolio.The head of Tudor Investments Corp called the cryptocurrency “a large speculative facility” against fiat-induced inflation. Meanwhile, he admitted that he holds a much higher amount of gold and called it a more reliable inflation hedge than Bitcoin.
Gold has risks, but Bitcoin might be worse
Fidelity International’s Joseph Zhang also commented that gold has risen more in line with US stocks. Client Solutions investment director explains that the correlation between the yellow metal and the S&P 500 rose to an 18-month high after the March sale.The positive correlation means that gold offers “less diversification benefits” in a multi-asset portfolio. Instead, investors shifted their safe haven calls to the US dollar in the near future.At the same time, retail investor demand for bitcoin futures on the Chicago Mercantile Exchange rose to a record high. Crypto data aggregator Glassnode saw a dramatic increase in the number of bullish small investments. Even spot exchanges, including the US Coinbase exchange, reported higher trading activity in April-May.