In his analysis of global financial markets, Jamie Coutts discusses the changing outlook in the world of finance. According to him, Bitcoin (already long considered the queen of cryptos) is consolidating as a safe haven. Upstream, it questions the future of traditional portfolio models.
“The crypto market is evolving,” says Coutts
In an analysis of current global market trendsJamie Coutts, shared his views on recent developments in the volatility of financial assets (including that of crypto and Bitcoin).
“We are poised to see a significant increase in volatility across markets, given the movement in US dollar (USD) yields and global M2 money supply,” explains the Bloomberg Intelligence analyst and Certified Market Technician (CMT. “What stands out clearly is the changing volatility profiles between traditional assets and the crypto currency Bitcoin (BTC) over the past few years”, adds-he.
“Bitcoin, a safe haven cryptocurrency”, according to Coutts
According to Coutts, Bitcoin (BTC) volatility follows a downward trajectory following the “hyper-volatile” period from 2011 to 2014. Currently, this measure is at 26.39, well below the peak of over 120 in early 2018.
Crypto analyst Bloomberg nevertheless remains skeptical about the short-term prospects of Bitcoin. According to him, the price of BTC Bitcoin will inevitably take into account:
- the deterioration of the macroeconomic environment (characterized by the rise in the US dollar),
- 10-year Treasury bond yields,
- the world money supply M2.
Coutts believes that the real question lies in Bitcoin’s ability to add value as risk diversification and to improve risk-adjusted returns. In a recent bear market, Bitcoin achieved a Sortino ratio of -1.78. This data places Bitcoin (BTC) ahead of many other crypto asset classes. For the moment, however, Bitcoin is still ahead of gold, silver and raw materials.
In any case, Jamie Coutts thinks that Bitcoin could become an obvious choice for crypto investors. BTC will be particularly useful for those who want to protect themselves from currency depreciation.
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