According to a $7.5 billion hedge fund, the price of gold will hit fresh highs in the next year, but investors may be better off gaining exposure to bitcoin instead as there’s “more upside” in holding the cryptocurrency.
During an interview with Bloomberg Troy Gayeski, co-chief investment officer and senior portfolio manager at SkyBridge Capital, a hedge fund with $7.5 billion under management, said the fund will maintain its exposure to the flagship cryptocurrency in the near future. Gayeski was quoted saying:
We’re going to stick to Bitcoin and crypto because we just think there’s more upside.
Gayeski added that while BTC is more volatile investors are “going to capture a little bit more juice” with BTC than they would “in gold from the same phenomenon.” Investors have often compared bitcoin to gold, with former Treasury Secretary Lawrence Summers saying cryptocurrencies could stay a feature of global markets akin to digital gold.
Over the last few months, monetary policy has driven the Federal Reserve’s balance sheet to a new record above $8 trillion, and fiscal spending has seen U.S. government debt swell. Both could lead to a rise in inflation, and as such investors are looking for ways to hedge their exposure. Gold and BTC are expected to rally if the Federal Reserve moves to taper asset purchases, Gayeski said.
Per Gayeski, the recent correction in cryptocurrency prices placed them 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.”
While BTC hit a new all-time high this year near $64,000 before plunging to around $36,000, gold nearly entered a bear market in March, before reversing and erasing its year-to-date losses. While Gayeski sees more upside potential in BTC, he’s also seemingly bullish on gold:
Going forward, the probability of gold continuing an uptrend is fairly high, making new highs over the next year.
SkyBridge Capital has launched a bitcoin fund earlier this year and has been frequently praising the asset over the last few months. Its founder, Anthony Scaramucci, predicted the price of BTC could hit $100,000 by the end of the year, and $300,000 when there’s an exchange-traded fund (ETF).
Last month, Scaramucci defended that despite the massive sell-off in cryptocurrency markets., bitcoin’s bull run isn’t over.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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