Leo Gillick
With institutions such as BlackRock buying up billions in Bitcoin, it is going from one all-time high to another, but more traditional world stocks are slowing their climb as rumors of a bubble start to make the rounds.
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For those of us who have diversified our portfolios to include Bitcoin, it’s been a profitable few years. The high of 2021 got people really talking, but the crash that came after scared a lot of people away from the investment. However, as Bitcoin once again reaches an all-time high, more people are eyeing it as an alternative to other, more traditional, but questionable markets.
Bubbles: Financial analysts have been warning of a correction across international stock markets. There have been huge surges in investments in tech stocks over the past months in the US, UK, and Europe. This has prompted experts to claim they are stretched and overvalued.
- Analysts are cautioning that the high market prices are a bubble, ready to burst at any moment. The Bank of England has warned of a “sharp correction,” which would imply a 10% drop in stock prices.
Numerous other factors, such as the uncertainty around federal spending and a second week of US government shutdown, are further stoking the stock market uncertainty, encouraging people to move to assets like Bitcoin.
A Bit of Bitcoin
Most people argue against Bitcoin due to its current lack of institutional backing and practical use. However, it’s made its mark on the financial scene with a market cap of almost $2.4 trillion. This makes it one of the most valued assets in the world. It can hardly be considered a fad.
BlackRock Investment: Prior to the past few years, Bitcoin was an asset mostly owned by riskier stock speculators. It had little backing from major players, and very few really understood it. Then, countries such as El Salvador invested and made it their national currency. Since their investment, they have reported a 125% profit. Now, BlackRock, the company making buying a home in the US impossible, has started investing.
- As of the time of writing, BlackRock owns 802,198 Bitcoin. This comes to a value of over $96 billion.
Investors are beginning to view Bitcoin as an asset with much higher returns and stability than traditional stocks. As the rumours of a market bubble fueled by an overvalued tech market grow, so do the number of investors keeping their money in Bitcoin and away from fiat stocks.
