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Jefferies' Christopher Wood remains as fundamentally bullish on the cryptocurrency space as ever. Even as after Bitcoin’s astonishingly rapid recovery from the China's clampdown on Bitcoin mining in June, when the price of the token collapsed by 30% in seven days in a deluge of margin call-triggered selling.

In a note titled 'Greed and Fear', the global head of equity strategy said that he will add another five percentage point allocation to Bitcoin to the existing five percentage allocation initiated on 17 December 2020 at a then price of $22,779. This will be paid for by reducing the weighting in gold by a further five percentage points.

Though, he is not giving up on gold yet. But, the note stated that it is risky for ageing gold bugs to ignore the reality that Bitcoin is a competitor to gold as a store of value.

The potential for Bitcoin is, in Greed & fear’s view, for a melt up in coming months in a move which is also likely to see growing speculative focus on Ethereum.

GREED & fear is not going to put Ethereum in a pension fund portfolio because it is not a store of value asset. But, it believes ether will likely to continue to outperform Bitcoin in coming months. The reason for the growing focus on Ethereum, and its price has outperformed Bitcoin, is that this protocol is at the center of the action in the fast expanding decentralised finance (DeFi) space.

“If blockchain technology has the long term potential to eat conventional finance, by eliminating the need for intermediaries, it also has the potential to trigger the end of the current dollar paper standard in a more benign manner than might otherwise have been the case," Jefferies' Wood stated in the note titled Greed and Fear.

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