Bitcoin’s market cap could triple to $1.5 trillion, says hedge fund manager Hugh Hendry

Popular hedge fund manager and macro investment strategist Hugh Hendry recently posted a bullish outlook for flagship cryptocurrency Bitcoin ($BTC), stating that its market cap could triple to nearly $1.5 trillion if the worsening macroeconomic conditions.

In an interview with Bloomberg last week, Hendry, who is known for his insight into macroeconomic trends, claimed that Bitcoin will become one of the best-performing assets, especially when macroeconomic conditions become volatile. He predicted that BTC’s market cap could grow to $1.5 trillion from the current $588 billion.

Hendry painted a picture of Bitcoin’s potential rise in the context of the broader asset allocation landscape, noting that Bitcoin is currently in the “world of asset allocation within a realm that we call alternatives” that includes private equity, commercial real estate and gold. In his words, it’s a “$100 trillion bag and bitcoin is half a trillion dollars, so it could triple and be a half trillion dollars,” which would make BTC half the size of Apple.

Hendry is optimistic that Bitcoin’s market cap will see a significant increase through a combination of regulatory pressure on other non-commodity digital assets and increased institutional involvement. The economist cited BlackRock’s recent push to list a spot bitcoin exchange-traded (ETF) fund as an example of institutional engagement.

He also pointed to the potential impact of high interest rates on the economy, suggesting that it could trigger an economic downturn. In his opinion, high interest rates “will break things”.

Discussing gold’s role in investment portfolios, Hendry pointed out that while gold is a reliable defensive asset during downturns, its potential for a significant upside is limited. The economist said the market cap is $13 trillion and the upside potential is “modest.”

As CryptoGlobe reported, BlackRock’s filing could spark a $15 trillion crypto boom as it appears to have sparked a race to list a spot Bitcoin ETF in the United States, with some of the world’s largest financial institutions investing world have submitted such a listing application.

Recommended image via Pixabay.

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