Bitcoin has been highlighted as a strong diversification asset in recent discussions, with an impressive annual return of 160% in 2023 compared to the S&P 500's 25%. Despite its higher annualized volatility of 50% compared to the S&P's 10%, Bitcoin's Sharpe ratio stands at 1.65, edging out the S&P's 1.53. This performance has led to recommendations from the Bank for International Settlements (BIS) for central banks to hold approximately 2% of their reserves in crypto assets by 2025, as noted by sources @AlmanacTrader and @TheBlock__. Meanwhile, Blackrock's interest in Bitcoin has sparked comments about the importance of 'diamond handing' the cryptocurrency. Additionally, there is a debate regarding the supply cap of Bitcoin, traditionally thought to be limited to 21 million units.
FINANCIAL REVIEW: “Once nation-state backed digital assets such as central bank digital currencies become mainstream, private crypto assets such as bitcoin are likely to be limited to speculators, criminals, nefarious regimes and libertarian true believers.” 👀🤦♂️ https://t.co/7kg99UibYD
Great stuff ⬇️ https://t.co/4aIK8yej2f
Boomer on boomer crime https://t.co/bUBSgFKjPp
2024 #BTC tracking seasonal Jan correction 2018-2022 analog. Zoom in. https://t.co/Yl0F9T7v8B
This is actually insane lol https://t.co/lDSuP424Dm
Not sure we can cringe any harder Jamie 😬 https://t.co/6ev6A2QXxF
The thing is that he’s right. Bitcoin is not capped at 21 million https://t.co/G0oR3dsbQj
Great conversation. https://t.co/DvSGq3MoPX
Blackrock wants all of your #Bitcoin Diamond hand it 💎 https://t.co/8Pi80lH04B
Bitcoin is a great diversification asset. Annual 2023 return +160% (S&P 25%) Annualised volatility 50% (S&P 10%) Sharpe ratio 1.65 (S&P 1.53) Not surprised central banks are advised to hold ~2% reserves (or more) in crypto assets by 2025 (BIS) H/t @AlmanacTrader @TheBlock__ https://t.co/Z8WzeB0OTy