High Net Worth Investors Are Backing Bitcoin & Gold Amid Macro Tensions: UBS Group

Asset management firm UBS Group disclosed a growing shift in institutional demand from the U.S. dollar to gold, Bitcoin (BTC), and other assets. Recent United States global trade tensions placed pressure on the dollar, with some traders seeking alternatives. Aside from macro effects, Bitcoin and related assets have gained significant traction since late 2024. Bitcoin Users Capitalize on Dollar Pressure In a recent Bloomberg New Voice event, Amy Lo, UBS Group’s co-head of Asia’s Wealth Management hinted that high-net-worth clients gravitate towards other assets. The U.S. dollar has held sway for many decades, with investors and businesses taking its demand to the roof. In many economies, it served as a hedge against local currency inflation, signaling a sense of stability. However, recent global trade standoffs have ushered in new headwinds for the U.S. Dollar dominance. As a result, institutional wealth managers are recording a progressive shift to other assets particularly digital currencies and precious metals. Chinese assets are also another alternative for certain clients after the previous country-based tariffs imposed on China. Although now suspended for 90 days, financial consumers seek diversity to prevent a major meltdown. According to Lo, these tensions spiked diversity leanings spiking the popularity of gold and crypto . The price of the yellow metal has consistently grown as users aim for a store of value against inflation. Similarly, Bitcoin has found itself in these circles following a bullish drive since its launch. Last year, the top crypto broke multiple resistance levels hitting new all-time highs. Although crypto assets remain volatile, the surge above $108k in January and upward projections are tailwinds for investors. On the flipside, Bitcoin price faced significant dips in the first quarter of the year, still based on macro sentiments making new adopters skeptical of the asset class. Institutional Demand At The Fore For several policy watchers, Bitcoin and crypto assets soared on weaker fiat currencies. In recent months, institutional investors have doubled their exposure to the asset class particularly after the approval of spot Bitcoin ETFs. These products offer an investment window for traditional clients to hold a piece of the assets. In a nutshell, rising demand and positive global regulation fueled the movement from traditional assets to cryptocurrencies. Decentralized finance (DeFi) activities also climbed in Q4 2024 alongside Bitcoin price.