Bitcoin Could Join $120 Trillion Mutual Fund Industry: Analyst

• The article discusses the $120-trillion mutual fund industry and how top 15 asset managers handle over $54 trillion.
• It talks about how passive investment strategies could propel Bitcoin into a new sphere and gain adoption among institutional investors.
• Finally, it examines the US credit debt bubble and how it affects risky investments like cryptocurrencies.

Mutual Funds Industry

The article starts by discussing the mutual fund industry, including well-known companies such as BlackRock, Fidelity and Vanguard, and how they manage over $54 trillion in assets. This money could buy all the companies listed in the S&P 500 Index, plus all the gold, fiat bills and coins in circulation on the planet. Moreover, it explains why passive investment strategies remain their top bet despite paying below inflation for the past three years.

Bitcoin Adoption

Next, it explains how Bitcoin BTC could become part of this massive industry, potentially catapulting its market capitalization into a whole other sphere as institutional investors take notice. It also answers a question from “Film City” regarding why low unemployment rates are not necessarily bullish for risky investments such as cryptocurrencies.

US Credit Debt Bubble

The article then looks at the US credit debt bubble which is currently sitting at $14 trillion dollars with interest payments amounting to nearly 6% of GDP – an unsustainable level by any measure – and explains how this affects risky investments like cryptocurrencies.

Unemployment Rate

It also discusses why an increase in unemployment rate above 10% would be detrimental to crypto markets since people would have less disposable income to invest into cryptos or stocks.

Conclusion

The show concludes by looking at how macroeconomic factors can affect cryptocurrency markets and why investors need to pay attention to them when making trading decisions.