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Forefront Friday – Cryptocurrency
Today’s forefront topic is on cryptocurrency and its growing acceptance in the market and more specifically, in investors’ portfolios. With rising inflation and a most recent high inflation percentage of 7.5 in January, Americans may be concerned and are seeing potential in crypto as a hedge against the traditional trading markets. The historical beta between the two markets points this way as there has been a negative correlation between them, but more recently we have seen the two become more closely aligned, yet this has not deterred the thinking that crypto offers a break from the traditional financial markets. We have seen crypto grow in market share and also in investors’ portfolios. Nearly 1 in 4 global consumers have reported ownership of cryptocurrency with 46 million Americans, or roughly 22% of the adult population, owning a part of bitcoin. With the popularity of crypto and its growing use in the markets, we can expect this number to steadily grow as the world of crypto moves more in to the space of decentralized finance.