Whales drive AV-dollarization; Ubs & Morgan Stanley Push Crypto


De-dollarization trends are being intensified right now as rich investors and financial institutions abandon the US dollar assets. Instead, they choose options such as Cryptocurrency and gold. This remarkable change takes place because large bank giants like UBS report that their ultra clients actively look to diversify. They aim to move away from traditional dollar owners in the middle of ongoing global economic uncertainty.

Also read: De-dollarization: 13 nations Find new Chinese Yuan use, abolition of US Dollars

Why the rich replace the US dollars with crypto and gold

US Dollar is portrayed as happy surrounded by many rich objectsUS Dollar is portrayed as happy surrounded by many rich objects
Source: Watcher Guru

Bank giants report shifts from dollars

JP Morgan BuildingJP Morgan Building
Source: Reuters

“UBS’s rich customers are still changing from assets in US dollars and turns to gold, crypto and China. Volatility is definitely here to stay.”

The rich and prosperous investors also prioritize their asset protection through certain different waste strategies. These strategies include Cryptocurrency, among other things. Some customers are currently allocating up to 5% of their total portfolios to digital assets. This is actually a remarkable change for traditionally conservative investors at this time.

Also read: New American Sanctions Against 30+ Chinese Companies Spikes Delivery Disciples for Shares

Gold remains central to waste strategy

Gold barsGold bars
Source: Watcher Guru

“Gold becomes very popular.”

This classic hedge against currency substitution is embraced together with newer alternatives. It creates a somewhat balanced approach to reducing the exposure to dollars in investment portfolios.

Also read: Steve Cohen warns of 45% recession, April Stores can strike again

Market Volatility Driver Protection by Waste Agreement

Charts showing the growth of cryptocurrency hat when dollars flow to digital assetsCharts showing the growth of cryptocurrency hat when dollars flow to digital assets
Diagrams showing Cryptocurrency Market Cap Growth – Source: Tradingview

Christina Au-Yeung, Head of Investment Management at Morgan Stanley Private Wealth Management Asia, acknowledged:

“We have seen our customers become much more conscientious about the risks and exposures they take, much more sensible in terms of volatility, budgeting and have a very clear and set of the idea for what each part of the portfolio is designed to achieve.”

The US Dollar, which was once considered to be the ultimate safe sanctuary, is now seen with caution. There is also some increasing skepticism. De-dollarization has essentially become a practical response to unpredictability in the market. It’s not just a purely speculative move.

Cryptocurrency legitimacy in case-dollarization

UBS's head office representing traditional banking sector that now includes CryptocurrencyUBS's head office representing traditional banking sector that now includes Cryptocurrency
Source: Bitcoinist

John Deaton, a prominent economic commentator, noted:

“We have officially reached the point where it is much more risky to have zero exposure to crypto than to allocate a small percentage of your net value to it.”

The role of the Cryptocurrency market in de-dollarization has in a kind of way evolved from Frans to mainstream. Institutional support has grown considerably in recent months.

Also read: Strategy’s Michael Saylor predicts the future of bitcoin (BTC) in 4 rows

Global consequences of wealth agreement

Amy LO observed:

“Brewing of trade voltages between the US and China urges investors to diversify their holdings, which have traditionally been quite US-centered.”

As de-dollarization speeds up within the people who are rich, the potential for wider currency substitution increases. This change may possibly reshape the global financial landscape for many years to come. Consequently, it can change how we think about reserve currencies.





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