UBS Clients Shift Investments to Crypto as Bitcoin Demand Increases

UBS Group's Co-Head of Wealth Management for Asia, Amy Lo, noted a shift in high-net-worth individuals' investment behavior. Key points include:

  • Increase in investments in gold, cryptocurrencies like Bitcoin, and Chinese assets.
  • Geopolitical tensions between China and the US influencing diversification away from US dollar-based assets.
  • Clients are exploring commodities and digital assets; volatility is expected to persist.

Global Market Leadership

The "Korea Premium," which reflects the price gap between Korean and global crypto exchanges, is declining. Highlights include:

  • Once indicative of high retail demand, it now indicates subdued local investor sentiment.
  • Recent Bitcoin rallies appear driven by global institutional capital rather than Asian retail traders.
  • A potential return of the Korea Premium would indicate significant market leadership changes.

Bitcoin (BTC) Price Holds Steady

Analyst ColinTCrypto observed that Bitcoin's price aligns with the growth of the global M2 money supply. Notable details are:

  • Bitcoin rose from $76,000 to over $105,000, with a prediction of reaching $120,000 by the end of May if current trends continue.
  • Bitcoin is currently trading around $103,500, up 0.70% in the past day, with a market cap of approximately $2.05 trillion.
  • The Crypto Fear & Greed Index indicates growing investor interest in digital assets.