1.20.26 - Longstanding bitcoin bull exits his position

1.20.26 - Longstanding bitcoin bull exits his position

Gold last traded at $4,763 an ounce. Silver at $94.57 an ounce.

This strategist and longstanding bitcoin bull exits his position and switches allegiance to gold -MorningStar

Jefferies strategist Chris Wood is concerned about bitcoin's reputation as a store of value with the advent of 'cryptographically relevant quantum computers'.

Quantum computing is going to be with us sooner than we thought, and its potential for cracking the code underlying the whole concept of bitcoin (BTCUSD) poses an existential threat, according to the concerns of one strategist. That means the cryptocurrency's claim to be a secure and reliable store of value could be in jeopardy.

This strategist, Chris Wood - a bullish advocate for bitcoin since 2020 - is sufficiently worried that he is eliminating his whole 10% recommended weighting in bitcoin from his recommended portfolio and reverting his allegiance back to gold (GC00).

Wood is the global head of strategy at Jefferies. He's a well-known commentator on financial markets who has expressed his opinions for 30 years in the popular weekly newsletter "Greed and Fear." In December 2020, when bitcoin's price was $22,000, Wood told U.S. pension funds that their long-term portfolios should contain a 5% weighting in bitcoin as a digital alternative to gold. The following November, he doubled it.

He said that bitcoin had become investible from the standpoint of institutional investors with custodial arrangements in place for digital assets.

Wood has been concerned about the dollar-debasement trade since 2002. He has consistently argued that asset allocations should include a 5% weighting in gold bullion and a 10% weighting in unhedged gold-mining stocks. Since 2020, when Wood began to divide his loyalties between gold and bitcoin, their respective returns have been 325% and 145%.