Bitcoin and Gold’s Bright Future, According to ByteTree Asset Management CIO

Charlie Morris is the founder and CIO at ByteTree asset management and believes that gold and Bitcoin will experience significant and long-lasting gains as a result of a weakening US dollar and increased sovereign risk.

Morris, in a article published by Kitco News on April 17, believes that the econometrics is clear and suggests that investors who own gold or Bitcoin will not have bad days. Morris stated in an interview on April 12 with Kitco News reporter Ernest Hoffman that he believes the market has begun a bull market, due to the weakening of the dollar.

Morris emphasized the unprecedented rise of gold prices, without Wall Street backing. This hasn’t been seen for the last 25 years. He warned investors about the rising sovereign risk, especially when U.S. bond yields exceed four percent.

Morris recalled the events of last October when the U.S. bond yield for the 10-year term rose to over four percent. This led to the resignations of both the UK Prime Minister as well as the Chancellor.

The attempts to implement economic policies that promote growth were not successful. In recent years, Credit Suisse, one of the world’s leading banks, has collapsed. He said that the U.S. response to the implosion of Silicon Valley Bank and Signature Bank only increased the risk.

Morris believes that gold prices will rise due to the rising sovereign risk around the world. Morris considers recent Wall Street investments into gold as significant. Both central banks and Wall Street are buying gold at the same time, creating ideal conditions for a gold bull market.

Morris, in addition to gold and other assets, is also optimistic about Bitcoin. He attributes this optimism to sustained inflation, as well as poor returns from other assets. Morris is almost certain that Bitcoin’s low point has been reached for this cycle. He estimates a price of $40,000 in the next year. However, he believes that the six-digit, hundred-thousand-plus figures will only be attainable in the next cycle after the halving event.

Morris claims that the negative sentiment surrounding Bitcoin over the last 18 months is unfounded. It was blamed for other failures within the cryptosphere. He stressed the robustness and resilience of the asset.

Morris concludes that gold and Bitcoin will outperform each other in the medium-term and are complementary as investments. Morris believes now is a great time to buy inflation-protecting assets, while they are still underpriced.