Bitcoin: Investment Grade batch

Today I will be sharing with you probably one if not the most bullish signal for Bitcoin of the year 2022.

But this opportunity the signal is not coming from an Onchain data indicator such as miner’s accumulation of whale’s balances in Exchanges for example or from an obscure chart formation as part of our technical analysis.

This time, the signal comes from the Traditional Financial Sector.

Last week Fidelity, one of the world’s largest asset managers, started to advise and allow its clients to invest in Bitcoin as part of their 401k accounts.

Now, for my friends who are not living in the United States, let me explain briefly what a 401k is.

What we colloquially known as a 401k is an investment account that is used to fund the retirement of the workers in this country.

Its name is derived from the section 401(k) of the Internal Revenue Service Act which allows account holders to avoid taxation of deferred compensations.

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The most common form of deferred compensation is when you receive an allocation from your employer to your “401k” with the objective of topping up your account, so you can be one step closer to reaching your retirement goals.

As you can see, these types of accounts must follow a long-term investment strategy and if on one hand the magic of the compound interest is a blessing, the threat of a high inflation over the years could have catastrophic consequences if this issue is not dealt properly.

I can tell you from experience as a Hedge Fund Manager that when you are dealing with pension assets (subject to the ERISA), your operations get complicated very quickly.

Why is that? Simply because we are talking about the retirement assets of the working population of the country, and this is as sacred as it can be.

I am giving all this information to put you in context about the relevance of the Fidelity decision to provide advice to invest in BTC on certain 401k accounts.

What we are witnessing here is a very sophisticated asset manager that is not only willing to invest in BTC and speculate as part of their portfolio management strategies, but also willing to sign off their name on certain financial advice that include the inclusion of Bitcoin as part of the retirement strategy of particular clients.

At the end we are starting to see the first indications that Bitcoin is not only recognized as a volatile and speculative instrument but also a sound investment grade asset class worthy of being part of a long term and comprehensive retirement strategy.