Economist Alex Krüger Says TradFi Firms Have Three Options When It Comes to Bitcoin (BTC) – Here’s What He Means

By The Daily Hodl April 01, 2024 In Bitcoin
Source: Alex Krüger/X

Widely followed economist and crypto analyst Alex Krüger says that traditional finance (TradFi) firms have a choice to make when it comes to Bitcoin (BTC).

Krüger tells his 169,200 followers on the social media platform X that TradFi portfolio managers will likely underperform everyone else for the next 10 years if they don’t accumulate Bitcoin now.

Says Krüger,


“Traditional finance portfolio managers have three options:

1) Buy Bitcoin now

2) Buy Bitcoin later

3) Underperform for the next decade.”

Krüger shares data from Goldman Sachs suggesting that Bitcoin has essentially outperformed every other financial asset, both in terms of total return and risk-adjusted return based on the Sharpe Ratio.

“Bitcoin. Nailed it once again. People in TradFi not paying attention better bury their egos and start learning.”

Source: Alex Krüger/X

According to the economist, despite a recent price correction for Bitcoin and many altcoins, he thinks it makes sense to stay long at least until the BTC halving, when miners’ rewards are cut in half.

“The thing is: the ETF flows are so large, that in my opinion, they are just beginning. That sustains and enables this level of absolute insane degeneracy.

That’s what’s happening here. If you are concerned that this is actually a good place to basically hedge your spot holdings using futures or perps to unhedge once it flashes and hedging part of it – a small percentage… That being said, I think it makes a lot of sense to keep on riding into the halving, at least.

Things are crazy, but things can get crazier, and we make the most money in the part where it gets really, really f*cking crazy. So if we’re just getting rational to protect profits, yeah that works but you leave most of the money on the table.”

At time of writing, Bitcoin is trading for $70,364.

Generated Image: Midjourney

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