Troy Gayeski, co-chief investment officer and senior portfolio manager at SkyBridge Capital, a hedge fund with $ 7.5 billion in assets under management, revealed he believes a Bitcoin supply shock could be imminent.
In an interview with Bloomberg, Gayeski noted that the on-chain signals indicate that “strong holders” are once again accumulating bitcoin while planning to hold it for longer periods of time. These holders buy coins from speculators who entered the market when the price of BTC started to rise. He said:
When we look at the channel right now, the data, what basically tells you is that a lot of strong holders are reasserting themselves and building up from those who entered the market at the end of last year. . And that he is preparing for some type of supply shock, very similar to what we had last October / November.
Last October, the price of bitocin began to rise shortly after PayPal revealed that it allowed investors to buy, sell and hold cryptocurrencies on its platform. Its price jumped as more organizations invest in it, until it hit an all-time high of $ 64,000 in May.
Gayeski added that bitcoin will continue to “be a volatile asset” but will also continue to “be very uncorrelated” and for the company its “risk-reward is now skewed upward again.” While the hedge fund is bullish on BTC, Gayeski detailed that he reduced his position before the crypto market crash.
Since hitting its all-time high, BTC has fallen to $ 30,000 and now sits between $ 40,000 and $ 30,000. SkyBridge Capital reduced its position to “prevent it from going any further” and reallocated some of those funds to Ethereum.
Bitcoin will be the market leader in terms of store of value and Ethereum, at least so far, is the market leader in terms of transaction usage. So we have a bit of diversification there. Overall, we have a position size of 9%.
Last month, as reported, the fund revealed that it believes the price of gold will hit new highs next year, but investors may be better off getting exposure to bitcoin instead, as there are “more benefits” to owning cryptocurrency.
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