1971 Capital chief investment officer Brian Russ says Ethereum is undervalued and that Bitcoin, gold and silver are in a long bull market.
For some investors, Bitcoin’s recent rally to the $100,000 milestone gave the signal that the asset is here to stay and the same could be said for traditional finance’s embrace of the Ethereum network.
With many cryptocurrencies trading close to all-time highs, analysts have started to wonder how long the bull market can last and what role macroeconomics and geopolitics could play in the length of the current crypto bull run.
On episode 46 of the Decentralize with Cointelegraph podcast, host Ray Salmond spoke to 1971 Capital chief investment officer Brian Russ about the current events impacting the crypto and stock market.
Growing US deficits
President-elect Donald Trump’s victory in the 2024 election and the Republican Party’s success in capturing the Senate and Congress are anticipated to ease the process of Trump’s promise to mandate crypto-friendly laws in the United States.
Since Trump’s election win, the market has been on an absolute tear, but investors question whether or not the blockbuster performance can continue after inauguration day.
Russ said, “If we are expecting wider deficits and a cyclical period of higher inflation, then bonds are going to look less attractive compared to real assets.”
“That could be equities, but certainly things like precious metals. Bitcoin I think gets into that conversation and commodities as well. You see some of the price action in commodities, which is which is partially driven by the story and partially driven by supply dynamics.”
Evolution of the 60/40 portfolio
When asked how the success of the spot Bitcoin BTC$97,055 exchange-traded funds (ETFs) could impact the traditional 60/40 portfolio, Russ said, more people are turning away from bonds and looking toward alternatives.
“The 60/40 portfolio has always been 60% equities and 40% bonds. Now folks are looking for alternatives. So maybe we don’t have the full 40% in the bonds. Maybe gold and silver take up a portion of that. Maybe Bitcoin takes up a portion of that. ”
Russ said that as those portfolio reallocations happen, he could predict tailwinds for things like gold and Bitcoin, silver and even some other assets further out on the curve.
“I think you get headwinds for fixed income, and I think we’re probably in the early to middle stages of seeing that right now,” he said.
Source: Cointelegraph
Recent Comments