In a new analyst note, global investment bank Jefferies asserted that Bitcoin serves as a hedge against currency devaluation and inflation. Jefferies advised long-term investors to allocate 10% of portfolios to Bitcoin denominated in US dollars.
The bank emphasized viewing Bitcoin as insurance rather than a short-term trade. It believes attempts to tighten monetary policy will face delays, contributing to the massive expansion of the money supply since 2020.
Jefferies expressed concerns about the ability of central banks like the Federal Reserve to smoothly transition away from unconventional policies. This strengthens the case for strategic investments like Bitcoin amid shifting economic conditions.
While many overlook recession fears, Jefferies said ongoing indicators continue pointing to an imminent downturn. Bitcoin’s narrative as protection against financial instability gained traction during 2022’s US banking crises.
Jefferies’ stance aligns with other experts touting Bitcoin’s inflation-resistant properties. Meanwhile, a recent court victory for Grayscale has boosted hopes for SEC approval of Bitcoin ETFs. Such a product would enable broader institutional adoption.
With currency devaluation threats looming, Jefferies argues Bitcoin serves a critical role for long-term, defensive-minded investors.
