- Global Uncertainty
- Upcoming French elections
- Trump Picks Mick Mulvaney as a budget chief
- SEC (Securities & Exchange Commission) will likely approve Bitcoin ETF
- Bitcoin as an Asset class could help balance Hedge Fund investment portfolios in 2017
Trump’s plan to increase infrastructure spending, three rate hikes in 2017 can cause the dollar to exponentially strengthen & the strong dollar will force emerging markets to go after alternative currencies.
Where Bitcoin can be seen as their first choice of digital currency.
French elections outcome can possibly trigger the Frexit as there are more chances of Marine Le Pen becoming the next president of France.
Her divisive rhetoric, strict policies towards immigration & leaving the European union could create more uncertainty in Europe which may boost the price of Bitcoin exponentially.
Pro-Bitcoin Mick Mulvaney has been appointed by the Trump’s administration, who is a big believer of Bitcoin & Crypto Currencies. He is an active & vocal supporter of Bitcoin & Block chain technology. So this makes a good probability of getting approval of Bitcoin ETF from SEC in near future.
Now let’s talk about how it can be beneficial for big Hedge Funds. Bitcoin is consistently the lowest correlated asset to other asset classes in the markets, which can make a great diversification in their portfolios
& always bring good returns for their clients. Even if their traditional assets are at breakeven levels, remember there is going to be more uncertainty ahead & nobody knows how Trump trade policies are going to affect the Global markets.
I see more & more potential in bitcoin price growth, because there is going to be an insane demand for bitcoins from Hedge Funds.
We call it Smart money & Smart money is going to move the Digital currencies market in 2017.
I more likely see the price of Bitcoin going beyond $2000 in near future.
By Amaan Pathan currency strategist & forex trader