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Fidelity Report Says Bitcoin's Market Cap Is 'Drop in the Bucket' of Potential

"In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher," the report said.

By Danny Nelson
AccessTimeIconOct 13, 2020 at 8:26 p.m. UTC
Updated Sep 14, 2021 at 10:08 a.m. UTC
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CORRECTION (Oct. 14, 2020, 04:25 UTC): This article originally said Fidelity recommended that portfolios consider a 5% allocation in bitcoin. The language used was a hypothetical. CoinDesk regrets the error.

Fidelity Digital Assets said bitcoin's market cap has plenty of room to grow in a Tuesday report on the benchmark cryptocurrency's uncorrelated nature.

  • Director of Research Ria Bhutoria wrote that the crypto’s current market capitalization “is a drop in the bucket compared with markets bitcoin could disrupt.”
  • Bhutoria argued that while institutional inflows may damp bitcoin’s uncorrelated performance, the crypto is “fundamentally less exposed” to the “economic headwinds” that other assets will likely face.
  • Bitcoin is therefore a “potentially useful” asset for uncorrelated return-seeking investors.
  • “In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher," the report said.

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