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Christopher Wood’s choice to hold his Bitcoin financial investments regardless of its cost increase shows a wider idea in the cryptocurrency’s lasting possibility.
As of November 23, the cost of one Bitcoin stands at $98,675.62
Bitcoin has actually gotten on an excellent higher trajectory, lately nearing the $100,000 mark. As these days, the cost of one Bitcoin stands at $98,675.62, noting a substantial boost of 7% in simply the recently. This rise adheres to an international market rally that started with Donald Trump’s unanticipated triumph in the United States governmental political election and has actually proceeded right into 2024. Notably, amongst the financiers capitalising on this boom is Christopher Wood, the worldwide head of equity technique atJefferies Despite the huge boost in Bitcoin’s worth, Wood is not prepared to market his holdings, also at almost $100,000 per coin. So, why is he hanging on?
Wood’s Bitcoin Investment Strategy
Wood, that is recognized for his favorable position on different possessions, has a long-lasting vision forBitcoin He holds a substantial part of his financial investment in the cryptocurrency via a United States dollar-denominated pension plan fund profile, that includes 10% inBitcoin Interestingly, when this fund initially made its Bitcoin acquisition in December 2020, the cryptocurrency was valued at simply $22,779. This stands for an enormous paper gain of greater than 300% on that particular initial financial investment. Despite Bitcoin’s remarkable development, Wood has actually shared that he means to hold his placement up until the cost gets to $150,000, which he thinks is the best degree for profit-taking.
In a current note entitled “Greed and Fear,” Wood emphasised that $150,000 per Bitcoin would be the target price at which he would begin to consider selling some of his holdings. His decision to hold on, even as Bitcoin approaches $100,000, is rooted in his belief that the cryptocurrency will continue to rise due to several factors, including anticipated regulatory changes in the US.
Wood’s Confidence in Bitcoin’s Continued Growth
One key reason behind Wood’s decision to stay invested in Bitcoin is his conviction that regulatory changes in the US will support the cryptocurrency’s further appreciation. Wood points to statements made by Donald Trump, who, as the former president, hinted at potential changes in US crypto regulation, specifically through the Securities and Exchange Commission (SEC). Wood is particularly optimistic about the involvement of Howard Lutnick, a prominent figure in Trump’s transition team and a known crypto supporter, who could influence policy changes favoring digital assets.
Wood’s strategy contrasts with many traditional investors who remain cautious about Bitcoin’s volatility. However, Wood believes that the digital asset will continue to benefit from favorable regulatory shifts, especially as more institutions and even governments begin to embrace blockchain technology and cryptocurrency.
Bitcoin’s Exceptional Return Over the Past Year
Over the past year, Bitcoin has delivered extraordinary returns to its investors, with an increase of 164%. A year ago, the price of one Bitcoin was hovering around $37,000; today, it is almost triple that value. This dramatic increase has made Bitcoin an attractive investment option for both retail and institutional investors looking for high returns. Despite this, Wood is not yet ready to cash out, convinced that the price could soar even higher in the near future.
While some investors may view Bitcoin’s rise as a signal to sell, Wood maintains that there is still room for growth. His target price of $150,000 reflects his belief in the long-term potential of Bitcoin, even though it remains volatile in the short term.
Bitcoin vs. Gold: Wood’s Perspective
Despite Bitcoin’s success, Wood is not of the opinion that Bitcoin will replace gold as the world’s primary store of value. While Bitcoin has gained significantly, gold has also seen strong returns in 2023, with increases of 73% against the yen, 54% against the renminbi, and 40% against the euro. Gold’s performance continues to outperform many traditional assets, and Wood does not foresee Bitcoin dethroning gold anytime soon.
Nonetheless, Christopher Wood’s decision to hold his Bitcoin investments despite its significant price increase reflects a broader belief in the cryptocurrency’s long-term potential. While the asset has already proven to be a highly profitable investment, Wood sees further upside ahead, bolstered by anticipated regulatory changes and growing institutional interest. For now, he remains patient, waiting for Bitcoin to reach $150,000 before cashing out – a target that, in his view, is still well within reach.
