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Tuesday, March 5, 2024

Hedge funds: Bitcoin has more upside than gold

Bitcoin and gold are considered interesting investment alternatives in view of the current monetary policy of the central banks. The hedge fund SkyBridge Capital is therefore expecting a rally in both assets. But although he predicts new record highs for gold, the Co-CIO of SkyBridge believes Bitcoin is the better investment.

• SkyBridge Capital: Gold is good, but Bitcoin is better
• Co-CIO sees gold bottoming , but Bitcoin still in the bull market
• Better prospects thanks to correction

In view of the persistently loose monetary policy and rising US inflation, both Bitcoin and gold are currently attracting increasing attention from investors as a possible investment alternative to protect against a devaluation of the US dollar – and apparently rightly so. Troy Gayeski, Co-CIO and Senior Portfolio Manager at the hedge fund SkyBridge Capital, believes a rally in both values ​​is likely, as he revealed in an interview with “Bloomberg”. Even if the Fed restricts asset purchases, i.e. counteracts rising inflation, he believes that bitcoin and gold prices should rise. However, he still sees better opportunities for one of the assets.

Expert recommends Bitcoin – despite the forecast record high for gold

According to Gayeski, the Fed is likely to announce the imminent end of the ultra-loose monetary policy this year, but will not actually begin tapering until 2022. This should mean that Bitcoin and gold remain attractive for the time being in view of the feared devaluation of the dollar and rising national debt. SkyBridge’s Co-CIO expects gold to hit new all-time highs in the coming year. As an investment, however, he still considers digital currency to be the better alternative. “We will stick with Bitcoin and crypto, simply because we think there is more upside potential there,” Gayeski told Bloomberg. Rising inflation rates would have a greater effect on Bitcoin than on the yellow precious metal, so that you can “get a little more juice there”

SkyBridge still sees Bitcoin in the bull market

Another reason why the senior portfolio manager relies on Bitcoin rather than gold is likely to be found in the price development of the two assets. Because since the beginning of the year, both systems have developed almost in opposite directions. Bitcoin initially rose significantly at the beginning of the year and marked a new all-time high of over 64,000 US dollars in April. This was followed, however, by a severe correction, from which the cyber currency has not yet recovered. While the digital currency was still booming in the first few months of the year, the gold price fell and, according to “Bloomberg”, almost slipped into a bear market. Then the price of the precious metal recovered and has since made up its losses. “From now on, the probability is very high
Bitcoin has not yet been able to initiate a comparable upward trend after its slump – and possibly that is precisely why it currently offers greater potential. Because according to Gayeski, Bitcoin is still in a bull market despite the sharp correction. The phase of institutional adoption of bitcoin has only just begun and the last halving event – which is apparently expected to have a long-term, positive influence – was not that long ago, said the SkyBridge expert in the “Bloomberg” interview. In addition, the trend line is still intact and the cryptocurrency has formed a stability zone at $ 33,000 to $ 36,000. It is difficult for Bitcoin to sustainably rise above 40,000 US dollars to 45,000 US dollars in the short term,
“All of the alternatives to fiat currencies – all of which have gone through significant corrections quite recently – are now in a much better position to deal with the eventual tapering and gradual slowdown in monetary growth than they were when they did Have reached peak after the other, “said Gayeski also on the prospects of alternative assets for the imminent period in which the loose monetary policy of the central banks is slowly being scaled back.

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SkyBridge with a high price target for Bitcoin

The market repeatedly cites the approval of a Bitcoin ETF by the SEC as a possible boost to the Bitcoin price. The US Securities and Exchange Commission has received several corresponding applications, but none has yet been approved. According to Gayeski, that should change soon. According to “Bloomberg” SkyBridge Capital is also planning a Bitcoin ETF in cooperation with First Trust Advisors and Gayeski expects approval for the fourth quarter of 2021 or the first quarter of 2022. With the SkyBridge Bitcoin Fund, the hedge fund has already had an investment vehicle on offer since last December which, according to “Fundview”, “should give semi-institutional and institutional investors access to Bitcoin investments”. According to “Bloomberg”, this fund was able to
But if you believe SkyBridge founder Anthony Scaramucci, there is much more to it. Because he predicted according to “Bitcoin.com” that the digital currency will be at 100,000 US dollars before the end of the year. The reason he gave was simply the high demand with a limited supply. With this mega price target, it is no wonder that Troy Gayeski also prefers Bitcoin to gold.

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