Skip to main content

Could Bitcoin be part of the $120T mutual fund industry?

Cointelegraph analyst and writer Marcel Pechman explains how Bitcoin could become a part of the $120-trillion mutual fund industry.

The show Macro Markets, hosted by crypto analyst Marcel Pechman, which airs every Friday on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on day-to-day crypto activity.

This week’s show starts by discussing the mutual fund industry, including the well-known BlackRock, Fidelity and Vanguard, and how the top 15 asset managers handle over $54 trillion. Can you believe it? That money could buy all the companies listed in the S&P 500 Index, plus all the gold, fiat bills and coins in circulation on the planet.

Pechman explains how the $120 trillion managed by these mutual funds relies heavily on fixed income and why it remains their top bet despite paying below inflation for the past three years. Moreover, the show discusses how passive investment strategies might catapult Bitcoin (BTC) into a whole other sphere, instantly gaining Adoption among institutional investors.

The next segment of Macro Markets answers a question from “Film City,” who posed a question in last week’s YouTube video comments. Pechman explains why the 40-year low unemployment rate in the United States is not necessarily bullish for risky investments. On the other hand, the analyst illustrates how an increase in the unemployment rate, especially above 10%, is certainly detrimental to cryptocurrencies.

The show concludes by examining the U.S. credit default swap (CDS) rates, which recently reached an 11-year high. Those insurance instruments activate if the debt issuer fails to honor their payments — in this case, the U.S. government Treasury. Pechman explains why the U.S. CDS is not worrisome at the moment and how one should analyze specific risks to the U.S. dollar currency.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday.

Comments

Popular posts from this blog

Investor Says BTC And cryptos Are Primed For A Big Turnaround

Taurus and Teylor collaborate to tokenize German SME loans on TDX Marketplace

Zeebu Celebrates a Resounding Success at Exclusive Yacht Party during Token2049 Singapore