The bond yields across most developed economies have dropped sharply since the central banks unleashed a slew of measures to counter the economic crisis caused by the COVID-19 pandemic.
This could pose a challenge to the institutional investors who rely on the traditional 60/40 portfolio allocation between equities and fixed income instruments.
This week Fidelity Digital Assets also released its Bitcoin Investment Thesis report which details how a portfolio with a Bitcoin (BTC) allocation as low as one to three percent can beat the traditional allocation on various time scales.
Daily cryptocurrency market performance. Source: Coin360
The report also highlights how Bitcoin’s market capitalization could soar, even if it manages to attract a small portion of the alternative investment market which is currently valued at $13.4 trillion or the bond market which is worth over $50.3 trillion.
As of today, about 13 public companies have allocated nearly $6.8 billion in Bitcoin investments this year, according to data from Coin98 Analytics. Although the total amount invested by the companies is only about 3.2% of the current market capitalization of Bitcoin, the encouraging sign is that the investments have been rising consistently.
If this trend continues and more institutional-sized investors enter the crypto space, Bitcoin price could rise quickly.
Let’s analyze the top-10 cryptocurrencies to find out what the dominant trend is in the markets.
Bitcoin (BTC) broke above the $11,500 resistance and rallied to $11,719 on Oct. 12 but the bulls could not sustain the breakout. This shows that the higher levels are attracting selling by the short-term traders.
BTC/USD daily chart. Source: TradingView
The BTC/USD pair is correcting for the past two days but the positive thing is that the bulls have managed to keep the pair above $11,178.
The upsloping 20-day exponential moving average ($10,999) and the relative strength index above 60 suggests that bulls have the upper hand.
If buyers can push and sustain the price above 11,560, the pair could