The founder of Eclectica Asset Management, Hugh Hendry, is confident that bitcoin will only benefit from the deterioration of the world’s leading economies
The head of Bitwise, Matt Hogan, said that the multi-year growth of the crypto market is now beginning. The entrepreneur considers the willingness of institutional investors to invest in the industry as an argument in favor of such a conclusion.
According to Hogan, the digital asset market has shown incredible stability amid ever-increasing pressure from regulators. And BlackRock’s management company recently filed a spot ETF for bitcoin as one of the reasons for another bull cycle.
“Actually, bitcoin has been on the rise since last November when FTX crashed. That is, cryptocurrencies were growing despite all the growing anxiety. And now we have BlackRock, who raised the flag and said that BTC matters. That it is an asset that institutional investors want to invest in. I think we have entered a new era of cryptocurrencies, I call it “mainstream” and expect a multi-year bullish trend that is just beginning now,” the businessman said.
The CEO of Bitwise is confident that success awaits not only players in the digital asset market, but also companies that cooperate with similar projects. Hogan predicts that many new crypto-currency projects will enter the stock market, as well as companies with a significant number of crypto-assets.
Hugh Hendry, founder of the hedge fund Eclectica Asset Management, believes that the increase in base rates in the world’s largest economies will provoke a deterioration in macroeconomic conditions. However, this will be a favorable factor for bitcoin.
According to the financier, BTC will be one of the best assets to invest in a troubled economy. Bitcoin capitalization has exceeded $595 billion, and this figure can grow 3 times, Hendry believes.
At the same time, he stressed that gold is an effective means of protecting capital, but its growth potential is limited. And bitcoin, on the contrary, has a very high growth potential.
“Growth is too difficult for gold, because the capitalization is $13 trillion. If gold triples, its capitalization will be compared with the entire US stock market. I’ve lived a long time and seen all sorts of madness, but I can’t imagine it. Therefore, gold is likely to maintain its price. The capitalization of bitcoin is half a trillion. And bitcoin has already entered the world of capital as an alternative asset. That is, as an alternative to commercial real estate, private companies, gold, and so on. And the volume of this market is $100 trillion. Therefore, bitcoin can easily triple its capitalization and reach $1.5 trillion. And it will be only half of the capitalization of Apple,” said Hugh Hendry.
He also believes that BTC is likely to benefit from pressure from US regulators on other cryptocurrencies. After all, only bitcoin is still officially considered a commodity, not a security.
