Hedge fund manager Hugh Hendry says Bitcoin (BTC) next year 
$60,797 and plans to invest at low interest rates. Hendry noted that there are always two significant risks in a short volatility investment strategy that aims to reduce volatility.
Investment Strategy
Hendry explained his option selling strategy, which aims to profit from the decrease in volatility in the market, and stated that it forms the basis of his strategy. His strategy includes a long position in Bitcoin and options on the Fed Funds rate falling below 2%.
Mag-7 and QQQ Comparison
Hendry compared the market value of Bitcoin to the big tech stocks known as the “Mag-7”. Mag-7 includes companies such as Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla. He also noted that Bitcoin is benchmarked against Invesco QQQ.
“BTC is everyone’s ghost, for better or worse. In reality, the PRELIMINARY EFFECT makes it irrelevant for this conversation, but it is quite attractive for upside potential.”
Hendry emphasized that Bitcoin’s market value is only $1 trillion, while QQQ is $42 trillion. He noted that with Mag-7’s $13 trillion market cap, these companies are the only ones worth considering.
“Banks’ equity coverage makes the robustness of this valuation extremely important. “If this unravels, the credit market will fall apart and the margin call will be enormous.”
Hendry added that banks should pay attention to the cash convertibility of the collateral. He also stated that they are trying to reduce their holdings as market conditions allow.
Pointing out that stocks capitalized at these levels have periodically lost value recently, Hendry pointed out that a similar situation may occur in the future.
The volatility of markets and the performance of major technology stocks play an important role in determining investment strategies. It may be beneficial for investors to carefully follow market trends and economic indicators.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
