Please register and get access to full articles.
Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.
This week, Bitcoin (BTC) has rebounded 4.5% since Monday, recovering last week’s losses and now trading roughly $10,000 below its all-time high in August. Historically, September is a weak month for BTC: since 2013, it has averaged a -3.19% return, making it the worst month of the year for the cryptocurrency.
However, the current macroeconomic environment could change this trend. Expectations of a U.S. interest rate cut may support Bitcoin, as previous periods of monetary easing have historically favored the cryptocurrency. Other major cryptos show mixed performance: Ethereum (ETH) remains around $4,450, Solana (SOL) gains 4.5%, and Binance Coin (BNB) remains stable at $850.
Hedge Against Inflation and Volatility: Bitcoin and major cryptocurrencies provide an alternative to traditional assets, particularly in a more accommodative monetary policy environment.
Growth Potential: The recent rebound and favorable rate outlook suggest short-term upside.
Portfolio Diversification: Cryptocurrencies offer exposure to assets uncorrelated with traditional markets, reducing overall portfolio risk.
Concrete Investment Options:
Crypto ETFs and Index Funds:
Bitwise 10 Crypto Index Fund (BITW): Exposure to the top 10 cryptocurrencies.
Grayscale Bitcoin Trust (GBTC): Direct access to Bitcoin for both institutional and retail investors.
Crypto Platforms and Related Companies:
Coinbase (COIN): Leading crypto exchange benefiting from transaction and volume growth.
Block (SQ): Positioned in payments and the crypto ecosystem with growth potential.
Recommendation:For investors seeking exposure to the cryptocurrency market with a managed risk profile, combining BTC and ETH via ETFs or trusts with stocks of exchange platforms offers an optimal balance of diversification, return potential, and access to digital asset growth. Current U.S. rate dynamics and macroeconomic trends make this sector particularly strategic for 2025.
Knowledge is power.