Institutional Investors Will Choose Bitcoin During Recession

Experienced macro investor Dan Tapiero is confident that fears of dollar depreciation will eventually pushinstitutionalized bitcoin, given that they are already buying such an asset-shelter as gold.

Tapiero's optimistic comment stems from news that the Ohio Police and Fire Department Pension Fund has allocated five percent gold to diversify its portfolio.

It is assumed that this $ 16 billion decision should hedge against inflation, which should return due to the global recession.

Before institutions allocate to #bitcoin many will allocate to #Gold first.

Huge win that advisors Wilshire Assoc.($168 billion) backed 5% gold allocation for Ohio police/fireman’s pension.

Fiat debasement leads to gold allocation now…Btc in future.https://t.co/FLztB8vyub

- Dan Tapiero (@DTAPCAP) August 29, 2020

Recently, economic uncertainty, combined with low interest rates and huge monetary stimulus, pushed the shiny metal to a record high of $ 2089 (early August).

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Even billionaire Warren Buffett changed hisinstallation by purchasing 21 million shares of the gold mining company Barrick Gold. In addition, Goldman Sachs analyst Jeff Curry, during a speech on CNBC, called gold "a protection against depreciation."

In early August, the correlation between bitcoin andgold hit an annual high of 67.1%. According to Bloomberg's Joe Weisental, it's no coincidence that major hedge funds are turning to the leading cryptocurrency, which is gradually turning BTC into a macro-sensitive asset:

"I think one of the surprising things for me is the extent to which bitcoin is becoming a macro-sensitive financial asset.Look how hard it is with gold today."

As the US Federal Reserve aims to increase inflation, more companies may follow MicroStrategy's lead and choose Bitcoin as a reserve asset.

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