Connect with us

Bitcoin News

“It Is Irresponsible For Institutions Not To Have Exposure To Bitcoin,” Says Anthony Pompliano

Published

on

It-Is-Irresponsible-For-Institutions-Not-To-Have-Exposure-To-Bitcoin-Says-Anthony-Pompliano

It-Is-Irresponsible-For-Institutions-Not-To-Have-Exposure-To-Bitcoin-Says-Anthony-Pompliano

  • Hong Kong goes through the longest losing streak since 1984
  • UBS to Charge Wealthy Clients for holding more than $560,000 in cash
  • Bullish for Bitcoin as people choose to put their wealth into something that is software controlled

“We may well be at the most dangerous financial moment since the 2009 Financial Crisis with current developments between the US and China,” said Lawrence Summers, former Secretary of the Treasury Monday.

Things took a big turn on Monday when China’s currency yuan tumbled below 7 against USD, for the first time in a decade. Stock market also experienced its worst fall of the year.

Hong Kong goes through the longest losing streak since 1984

Asian stocks still remain in red, with Hong Kong investors headed for the exit as street protests, weak yuan, and economic woes intensified worries over potential outflows from the city.

The MSCI Hong Kong Index has its 10th straight decline, closing 0.6% lower. The last time Hong Kong stocks experienced such a long losing streak was in June-July 1984, five months before the UK and China signed a Declaration for the handover of Hong Kong to China.

UBS to Charge Wealthy Clients for holding more than $560,000 in cash

UBS Group plans to end the policy of charging its rich Swiss clients an annual fee of 0.6% for holding more than 500,000 euros ($560,000). Amidst an extended period of negative interest rates, the lenders have to pay the central bank to park excess cash in Swiss franc or euros.

UBS’s decision comes after Credit Suisse said it will impose a fee of 0.4% on its customers with euro accounts of over 1 million euros, starting September.

Rising trade tension between the US and China and increase in the prospect for a hard Brexit means the Fed may cut its benchmark interest rate three times this year, as per the revised outlook from economists at Goldman Sachs.

Bullish for Bitcoin as people choose to put their wealth into something software controlled

Monday, we already saw the correlation between USDCNY and Bitcoin as the latter jumped from $10,000 to $12,325. This is why Morgan Creek’s Anthony Pomplaino says, Bitcoin is becoming an increasingly “obvious” global hedge.

The fact that Bitcoin is a non-correlated, asymmetric return-profit asset, Pomp says it is

“irresponsible for an investor to have 0% exposure to the digital currency in their portfolio.”

As Pomp stated during his interview with CNBC, people are:

“electing to put their wealth into something that is controlled by software and cannot be manipulated by a single country or politician.”

Bitcoin has been showing a negative correlation to the S&P 500 and is currently trading at $11,700, up 216% YTD.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading
Advertisement
Advertisement

Recent Posts

Copyright © 2019 The Crypto Report