Troy Gayeski is co-chief investment officer at SkyBridge Capital and senior portfolio manager. The hedge fund has $7.5 billion under management. He believes that a Bitcoin supply shock could be coming.
Gayeski stated that on-chain signals indicated that’strong holders’ have been accumulating bitcoin again and plan to keep it for longer periods. These holders are buying coins from speculators who bought bitcoin when it was at its highest price. He stated:
Looking at the on-chain data right now, what it basically tells you is that a lot of strong holders are reaffirming themselves and accumulating from the ones who got in the market late last. It is preparing for a supply shock very similar to last October/November.
The price of bitocin surged after PayPal announced that it would allow investors to purchase, sell and hold cryptocurrencies through its platform. As more companies invested in it, its price soared to $64,000 in May.
Gayeski stated that bitcoin will remain a volatile asset, but it will also continue to be’very non-correlated’. According to Gayeski, the firm’s ‘risk-reward ratio is now tilted again in the positive. Gayeski stated that the hedge fund was bullish on BTC but it had reduced its position prior to the crypto market crash.
BTC has fallen to $30,000 since its record-breaking high. It now trades between $40,000 and $35,000 annually. SkyBridge Capital reduced its position to “keep it from going further” and reallocated some funds to Ethereum.
Gayeski also added:
Bitcoin will be the market leader for store of value, while Ethereum is, at least until now, the market leader for transaction use. We have some diversification. We have a position size of 9%.
As reported last month, the fund stated that it believes gold will reach new highs within the next year. However, investors might be better off investing in bitcoin as there is’more upside’ to holding the cryptocurrency.