Macro guru Hugh Hendry says that Bitcoin’s (BTC) total market cap is likely to almost triple in size as macroeconomic conditions worsen.
In a new Bloomberg Television interview, the hedge fund manager says that high interest rates are likely to cause an economic downturn.
“When you raise rates to 5% in the UK, effectively we’re at 20%. And we’re going to break things. That’s what the markets are telling you.”
According to Hendry, Bitcoin will be one of the top-performing assets when macroeconomic conditions worsen and its market cap is likely to explode. Bitcoin’s current market cap is $597 billion at time of writing.
He says gold is also a sound investment during a downturn, but that the drawback is that there is limited potential to the upside for the precious metal.
“Gold is a defense. The upside is kind of modest. Gold is capitalized at $13 trillion…
So say gold tripled. Gold would be the equivalent size of all US stocks. Now, I’ve lived long and I’ve lived a crazy life and I’ve seen some crazy stuff but even I can’t conceive of that. So maybe it preserves its value…
Bitcoin’s [market cap is] half a trillion dollars. And Bitcoin finds itself in the world of asset allocation within a bucket that we call alternatives, you know private equity, commercial property, gold et. al. It is a $100 trillion bucket and Bitcoin is half a trillion dollars. So it could triple and it would be one and a half trillion dollars. It would be half the size of Apple.”
Hendry believes that BTC’s market cap will likely get a boost from regulators targeting other digital assets that they don’t consider a commodity like they do Bitcoin and from increased institutional involvement such as BlackRock’s Bitcoin spot ETF application.
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The post $1,500,000,000,000 Bitcoin Market Cap Incoming, Predicts Macro Guru Hugh Hendry – Here’s How appeared first on The Daily Hodl.
