Bitcoin allocation strategies are gaining attention in corporate asset management strategies

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Executives of Unstoppable Domains recently presented specific policies regarding the utilization of Bitcoin in corporate financial strategies. According to their statement on December 28, the corporate finance department should consider allocating 1-5% of total assets to Bitcoin.

A phased investment approach is recommended

When acquiring Bitcoin, it is important to utilize dollar-cost averaging (DCA) to mitigate market volatility risks. This method helps avoid the impact of price fluctuations caused by large one-time purchases and enables the construction of a more stable investment position. Regular monitoring and record-keeping of holdings are essential elements in corporate financial management throughout the investment process.

Building a risk management framework

There is a suggestion that companies should wait for market conditions to improve before increasing their Bitcoin holdings beyond 2% of liquid assets. Particularly, cautious action is advised until an increase in ETF inflows is confirmed.

Analytical methods for market timing

It is emphasized that technical analysis is indispensable for determining the appropriate timing for Bitcoin investments. By accurately capturing market sentiment and key turning points through chart analysis and trend indicators, more effective investment decisions can be made.

By adopting these policies, corporate finance departments are expected to respond to the volatility of the cryptocurrency market while achieving a long-term and sustainable asset portfolio.

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