Bitcoin and gold’s bright future, according to ByteTree Asset Management CIO
Charlie Morris, who is the founder and CIO of ByteTree Asset Management, believes that gold and Bitcoin will experience significant and lasting gains due to a weakening dollar and rising sovereign risk.
According to a Kitco News report published on April 17, Morris believes that the econometrics are clear, suggesting that investors in gold and Bitcoin are unlikely to face bad days. In an interview with Kitco News reporter Ernest Hoffman on April 12, Morris expressed his belief that the market is witnessing the beginning of a strong bull market for precious metals, primarily due to the weakening of the dollar.
Morris highlighted the unprecedented rise in gold prices without Wall Street’s support, which has not been seen in the last 25 years. He urged investors to be cautious about escalating sovereign risk, especially when the US 10-year bond yield exceeds four percent.
Morris recounted events from last October, when the US 10-year bond yield rose above four per cent, leading to the resignation of the UK Prime Minister and Chancellor of the Exchequer. The attempt to implement economic policies for growth did not prove fruitful. More recently, five banks fell, and Credit Suisse, a leading global bank, collapsed. He noted that the US government’s response to the implosion of Signature Bank and Silicon Valley Bank only increased the risk.
With rising sovereign risk around the world, Morris expects gold prices to rise. He considers the recent influx of Wall Street investment in gold to be significant, as central banks and Wall Street investors are now buying gold at the same time, creating the ideal conditions for a bull market.
In addition to gold, Morris is bullish on Bitcoin, attributing persistent inflation and poor returns on other assets as key drivers. He is almost certain that Bitcoin has reached the low point for this cycle, predicting a price of around $40,000 in the next year. However, he believes that the six-digit, hundred-thousand-plus figures will only be achieved in the next cycle after the halving event.
Morris argues that much of the negativity surrounding Bitcoin over the past 18 months was unfounded, as it was blamed for failures in other areas of the cryptosphere. He emphasized the resilience and robustness of the asset.
In conclusion, Morris envisions that gold and Bitcoin will outperform in the medium term and complement each other as investments. He believes that now is an excellent time to own inflation hedges while they are still underpriced.
