Jefferies’ Christopher Wood Basically Remains Bullish cryptocurrency Space as always. Even after bitcoin’s surprisingly rapid recovery from China’s dominance of bitcoin mining in June, when the coin’s price fell by as much as 30% in seven days in a flood of margin call-triggered sales.
In a note titled ‘Greed and Fear’, the global head of equities strategy said that he will be adding another five percentage point allocation to bitcoin to the existing five percent allocation launched on 17 December 2020 at the then price of $22,779. This will be paid for by reducing the weight of gold by another five percent.
However, he has not given up gold yet. But, the note added, it is risky for the aging gold worm to ignore the reality that bitcoin is a competitor to gold as a store of value.
From a greed and fear perspective, Bitcoin will likely melt away in the coming months in a move that is also likely to see an increased speculative focus on Ethereum.
Greed and fear will not put Ethereum into pension fund portfolios because it is not a store of value asset. But, it believes that Ether will continue to outperform Bitcoin in the coming months. The protocol has been at the center of action in the rapidly expanding decentralized finance (DeFi) space, due to the increasing focus on Ethereum, and its price outperforming Bitcoin.
“If blockchain technology has the long-term potential to eat away at traditional finance by eliminating the need for middlemen, it has the potential to trigger the end of the current dollar paper standard in a more benign way than might otherwise be the case,” said Jefferies Wood. in a note titled Greed and Fear.
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