Esteemed hedge fund manager and macro investment strategist, Hugh Hendry, has recently shared an optimistic perspective on Bitcoin predicting a potential tripling of its market capitalization to $1.5 trillion amidst worsening macroeconomic conditions.
In a recent interview with Bloomberg, Hendry, known for his astute insights into macroeconomic trends, expressed his belief that Bitcoin will establish itself as a top-performing asset, particularly in times of economic volatility. He projected that BTC’s market capitalization, currently at $588 billion, could reach $1.5 trillion.
Hendry contextualized Bitcoin’s potential ascent within the broader landscape of asset allocation, highlighting its current position in the “world of asset allocation within a bucket that we call alternatives.”
This category encompasses private equity, commercial property, and gold.
According to Hendry, this alternative asset bucket amounts to $100 trillion, with Bitcoin currently constituting half a trillion dollars.
He emphasized that if BTC were to triple in value, it would reach $1.5 trillion, placing it on par with Apple.
The renowned economist is optimistic that Bitcoin’s market capitalization will receive a significant boost from a combination of regulatory pressures on other digital assets that are not classified as commodities and increased institutional participation.
Hendry pointed to BlackRock’s recent efforts to list a spot Bitcoin exchange-traded fund (ETF) as an example of institutional involvement.
Additionally, Hendry underscored the potential consequences of high interest rates on the economy, suggesting that they could precipitate an economic downturn.
He expressed his concerns, stating that high interest rates “are going to break things.”
When discussing the role of gold in investment portfolios, Hendry opined that while gold serves as a reliable defensive asset during economic downturns, its potential for significant upside is limited.
The economist highlighted that gold’s market capitalization currently stands at $13 trillion, with its potential for growth being “modest.”
BlackRock’s filing has sparked a race among major financial institutions to list a spot Bitcoin ETF in the United States, potentially unlocking a $15 trillion cryptocurrency boom.