Popular hedger fund manager and macro investment strategist Hugh Hendry has recently revealed a bullish outlook for the flagship cryptocurrency Bitcoin ($BTC), saying its market capitalization could almost triple to $1.5 trillion as macroeconomic conditions worsen.

In an interview with Bloomberg last week, Hendry, who is renowned for his insights on macroeconomic trends, asserted that Bitcoin will emerge as a top-performing asset, particularly when macroeconomic conditions become volatile. He anticipated BTC’s market capitalization could go from its current $588 billion level to $1.5 trillion.

Hendry painted a picture of Bitcoin’s potential rise in the context of the broader asset allocation landscape, noting that Bitcoin currently finds itself in the “world of asset allocation within a bucket that we call alternatives,” which includes private equity, commercial property, and gold. Per his words, it’s a “$100 trillion bucket and Bitcoin is half a trillion dollars, so it could triple and be one and a half trillion dollars,” which would make BTC half of the size of Apple.

Hendry is optimistic that Bitcoin’s market cap will get a significant boost from a combination of regulatory pressure on other digital assets that aren’t regarded as commodities and increased institutional participation. The economist pointed to BlackRock’s recent push to list a spot Bitcoin exchange-traded fund (ETF) as an example of institutional involvement.

He also highlighted the potential ramifications of high interest rates on the economy, suggesting they could trigger an economic downturn. Per his words, high interest rates are “going to break things.”

While discussing the role of gold in investment portfolios, Hendry suggested that despite being a dependable defensive asset during downturns, gold’s potential for significant upside is limited. The economist said that its market capitalization is at $13 trillion and its upside is “modest.”

As CryptoGlobe reported, BlackRock’s filing could unlock a $15 trillion crypto boom as it seemingly triggered a race to list a spot Bitcoin ETF in the United States, with some of the world’s largest financial institutions filing for such a listing.

Featured image via Pixabay.