On 16 October 2024, Real Vision’s Chief Crypto Analyst Jamie Coutts shared a bullish outlook for Bitcoin in light of growing institutional support. Coutts emphasized that a significant shift in asset allocation preferences is happening, spurred by BlackRock CEO Larry Fink’s endorsement of Bitcoin. Coutts said that with BlackRock’s Aladdin platform—used by sovereign wealth funds and major asset managers for modeling and attribution—offering seamless Bitcoin integration through its ETF, the path for Bitcoin to rise further has been paved. Coutts predicted that even a small shift in institutional allocations from traditional assets like sovereign debt to Bitcoin could push the price of BTC beyond $500,000 by the end of the decade.
Coutts’ current analysis echoes points he made in a 17 April 2023 post, where he outlined the risks posed to bondholders by Bitcoin’s rise. He noted that debasement—resulting from excessive money printing and swelling global debt—is a growing issue for portfolio managers, and Bitcoin has increasingly served as a hedge against this trend. At that time, Coutts had argued that Bitcoin, with its disinflationary supply and growing adoption, could replace bonds as an essential component of diversified portfolios, especially as government bonds have consistently underperformed against rising monetary supply. Even then, Coutts suggested that if just 1% of the global bond market shifted to Bitcoin, it could push the price of BTC to around $185,000.
In his recent post, Coutts revisited this theme, pointing out that during the last bear market, Bitcoin had outperformed bonds, commodities, and many equities, reinforcing its strength as a long-term store of value. He noted that traditional asset classes had not adequately compensated managers for the risks they faced in an era of low real returns and high inflation. The shift away from bonds is now inevitable, according to Coutts, despite government mandates for bond purchases or new banking regulations, as Bitcoin emerges as a more viable alternative.
Coutts added that the rise of Bitcoin in portfolios of massive sovereign wealth funds is still feasible, even with liquidity challenges. He argued that with BlackRock now actively promoting Bitcoin and other major institutional players offering the necessary tools for risk modeling and portfolio attribution, the ongoing debasement trend will only strengthen Bitcoin’s position. In his opinion, every time a fund manager opts for Bitcoin over sovereign debt, it further validates this shift.
With #crypto bro Fink endorsing #Bitcoin's portfolio-enhancing qualities, a seismic shift in asset allocation preferences is underway. @BlackRock's Aladdin platform, utilized by the largest sovereigns and money managers, provides the tools for modelling and attribution while… https://t.co/gxaxwBRdTP pic.twitter.com/FeNKnggUuf
— Jamie Coutts CMT (@Jamie1Coutts) October 16, 2024
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