Hedge Fund Strategist Supports Bitcoin as Interest Rates Expected to Drop

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.

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Unlike stable assets like Treasury bills, stocks at these levels have historically seen sharp declines relative to GDP.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.