A Bitcoin comeback may be underway.
Just as the cryptocurrency was coming off its latest winning week, ProShares’ Simeon Hyman highlighted Bitcoin’s bullish trend on CNBC’s “ETF Edge.”
“If you look at Bitcoin, it’s going up a little bit, but stock prices are going down.” [since the Iran war began,]said the firm’s global investment strategist on Monday. “So I think the diversification talk is really valid in this current environment.”
As of Friday’s market close, Bitcoin was up 5% this week, but most of that gain happened in 24 hours. Moreover, it is up about 8% since the Iran war began on February 28th.
Meanwhile, the S&P 500 and gold are down more than 3% since the war with Iran began, and the tech-heavy Nasdaq is down more than 2%.
ProShares is active in the cryptocurrency space and manages more than a dozen cryptocurrency ETFs. The company launched the ProShares CoinDesk 20 Crypto ETF (KRYP) last month. Although up nearly 5% since the Iran war began, the fund is down about 7% since its debut in early February.
Despite Bitcoin’s recent strength, it is still down more than 40% from its all-time high of $126,198 in October last year.
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Bitcoin’s volatile year
Kim Arthur, founding partner and CEO of Main Management, believes Bitcoin is in the midst of a classic crypto winter, a phenomenon that tends to occur every four years. According to Arthur, they are currently at the bottom.
“Bitcoin was trading at $125,000 five months ago, so it was down more than 50% when this conflict broke out,” he said in the same interview. “I like the fact that it’s outperforming many other asset classes.” [since the war,] But…in that case, you’ll need to widen the lens a bit. ”
Arthur, who has exposure to Bitcoin, has indicated that he is currently taking a passive investment approach to the cryptocurrency.
“For myself as an asset allocator and portfolio manager…I look at Bitcoin as a benchmark, and then everything else relative to it,” Arthur said, adding that Bitcoin is a very difficult master to beat, especially in 2021 and beyond.
The digital currency has appreciated about 15% in the past five years.
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