🚩 Buying Bitcoin as Hedge Against Inflation
Despite retail investors pulling back from Bitcoin ETFs in April, big institutions are still buying Bitcoin as a long-term hedge. According to Coinbase Institutional, there are three main reasons:
- De-dollarization: Fearing the weakening of the USD, they prefer holding Bitcoin instead of converting it back
- Independence: Bitcoin is increasingly viewed as its own asset, not just a tech stock
- Hedge Against Inflation: Bitcoin’s scarcity, portability, and decentralization make it a strong inflation hedge