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Troy Gayeski, the co-CIO and Senior Portfolio Manager at SkyBridge Capital, has come out to share the hedge fund’s bullish outlook on Bitcoin (BTC). In an interview last week, Gayeski advised that while gold will soar to new heights in the coming year, investors that seek alternatives, especially now that global debts keep on increasing, should go the BTC way. Per Gayeski, BTC will rally just like gold despite the Federal Reserve trying to reduce its purchase.
In the interview, Gayeski said that SkyBridge Capital, which has approximately $7.5 billion in assets under management (AUM) intends to stick to Bitcoin and alternative cryptocurrencies because they have more upside. He acknowledged that the crypto market is quite volatile. However, he was overtly bullish on crypto, noting that the company stands to capture a little more juice from the sector than it would in gold.
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Explaining the confidence in crypto, Gayeski noted that SkyBridge’s BTC fund has performed well despite being fairly new. According to him, the SkyBridge Bitcoin Fund, which launched in December last year, is up 51.2%.
Gold is losing its luster to crypto
Per Gayeski, investors are making decisions based on the commentary of the US central bank as inflation increases after money was injected into the economy to prevent it from collapsing in the wake of the COVID-19 pandemic. Apart from inflation, this move also increased the government debt significantly, a move that further weakens the US dollar while pushing investors to seek alternatives.
In light of this information, Gayeski said,
All fiat-currency alternatives — which have all gone through fairly recent substantial corrections — are in a much better place now to handle that eventual taper and gradual slowing of money-supply growth, than they were as they were making higher-highs after higher-highs.
Seeing as BTC and gold both experienced wild swings this year, experts have debated whether the leading cryptocurrency is taking gold’s demand. While gold came close to sinking, it reversed course and recovered year-to-date losses. On the other hand, BTC peaked at $64,863.10 (£45,760.92) before losing 43.7% of this value to change hands at $36,530.25 (£25,762.96) at the time of writing.
This price correlation saw Citigroup say that gold is losing its luster to BTC. Taking a neutral position in the debate, Goldman Sachs said that the two assets can co-exist because BTC’s rising popularity does not endanger gold.
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