Economist and crypto analyst Alex Krüger believes that traditional finance (TradFi) firms face a critical decision when it comes to Bitcoin (BTC). In a recent tweet, Krüger expressed that portfolio managers in the traditional finance space will likely underperform their peers in the next 10 years if they do not start accumulating Bitcoin now. Krüger outlined three options for TradFi portfolio managers: buy Bitcoin now, buy Bitcoin later, or underperform for the next decade.
Backing his argument, Krüger shared data from Goldman Sachs, which shows that Bitcoin has consistently outperformed all other financial assets in terms of total return and risk-adjusted return, as measured by the Sharpe Ratio. He emphasized that those in the traditional finance sector who are not paying attention to Bitcoin need to set their egos aside and start learning about its potential.
Despite a recent price correction for Bitcoin and other cryptocurrencies, Krüger believes that it still makes sense to hold a long position, at least until the BTC halving event, which reduces miners’ rewards. He pointed out that the flow of funds into Bitcoin ETFs is still in its early stages and predicts that the influx of capital will sustain the current level of volatility and opportunities for profit.
Krüger acknowledged the craziness of the current market conditions but stated that even though things may seem irrational, investors often make the most money during times of extreme volatility. He advised not to be too rational in an attempt to protect profits, as doing so may leave significant gains on the table.
As of now, Bitcoin is trading at $70,364.