SkyBridge Capital’s co-chief investment officer Troy Gayeski predicts that Bitcoin will go through a supply-side crisis similar to what happened last year when BTC kicked off its bull market.
Gayeski tells Bloomberg in a new interview that he’s seeing on-chain signals indicating that a certain group of buyers are back, and they are scooping up BTC for the long haul.
“When we look right now at the on-chain, data what is basically telling you is a lot of the strong holders are reasserting themselves and accumulating from those that got into the market late last year. And that it is setting itself up for some type of supply shock, very similar to what we had last October/November.
So it’s going to be a volatile asset. But it continues to be very non-correlated. And we think the risk-reward is now skewed again to the upside.”
While Skybridge Capital is long-term bullish on Bitcoin, Gayeski adds that the hedge fund has reduced its position in the flagship cryptocurrency before the crypto markets crashed in May.
“So for us basically, what we did is we trimmed the position in order to keep it from going further, and our portfolios at the end the March, we had more outflows than inflows.”
After whittling down their Bitcoin stake, Gayeski says the hedge fund reallocated some of the proceeds to the second-largest cryptocurrency by market cap.
“And since then, we’ve rotated a small amount of the capital into Ethereum. We view the market pretty straightforward as: 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 use. So, we have a little diversification there. All in all, we have a 9% position size.”
I
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/IM_VISUALS
