Hedge fund manager Hugh Hendry is taking a bullish stance on Bitcoin and predicting lower interest rates in the near future.
He notes that market strategies targeting reduced volatility always face two key risks: either major tech companies could skyrocket in value to match the country’s GDP, or interest rates could rapidly drop to zero.
Hendry’s current approach involves holding Bitcoin and options that bet on the Federal Reserve cutting interest rates below 2% by the end of 2025. While there’s a chance Bitcoin might not perform as expected while stocks rise, he’s willing to accept that risk.
He compares Bitcoin’s relatively small market cap of $1 trillion to the enormous $13 trillion value of the top tech firms, suggesting that banks should be cautious about relying on these high valuations as collateral.
Unlike stable assets like Treasury bills, stocks at these levels have historically seen sharp declines relative to GDP.
A major Bitcoin investor has placed a high-stakes bet on a short-term price drop, committing hundreds of millions of dollars just as a crucial week of economic reports looms.
Before stepping into his role as the Trump administration’s key advisor on artificial intelligence (AI) and cryptocurrency, David Sacks divested a substantial portion of his investments tied to digital assets.
MoonPay, a leading Web3 infrastructure provider, has expanded its capabilities with the acquisition of Iron, a developer specializing in stablecoin infrastructure.
Pavel Durov, the founder of Telegram, has reportedly left France and moved to Dubai after receiving court approval.