Hedge Fund Strategist Supports Bitcoin as Interest Rates Expected to Drop
Hedge fund manager Hugh Hendry is taking a bullish stance on Bitcoin and predicting lower interest rates in the near future.
He notes that market strategies targeting reduced volatility always face two key risks: either major tech companies could skyrocket in value to match the country’s GDP, or interest rates could rapidly drop to zero.
Hendry’s current approach involves holding Bitcoin and options that bet on the Federal Reserve cutting interest rates below 2% by the end of 2025. While there’s a chance Bitcoin might not perform as expected while stocks rise, he’s willing to accept that risk.
He compares Bitcoin’s relatively small market cap of $1 trillion to the enormous $13 trillion value of the top tech firms, suggesting that banks should be cautious about relying on these high valuations as collateral.
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Could Bitcoin’s Rally Be Short-Lived Amid Dollar Gains?Unlike stable assets like Treasury bills, stocks at these levels have historically seen sharp declines relative to GDP.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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