Brian Russ, chief investment officer at 1971 Capital, claims that Bitcoin, gold, and silver are all in a long-term bull market and that Ethereum is cheap.
Like traditional finance’s adoption of the Ethereum network, some investors see Bitcoin’s recent surge to the $100,000 milestone as a sign that the commodity is here to stay.
Since many cryptocurrencies are trading at their all-time highs, observers are beginning to question how long the present crypto bull market can persist and what impact macroeconomic and geopolitical factors may have.
Brian Russ, chief investment officer of 1971 Capital, discussed the recent developments affecting the stock market and cryptocurrency with host Ray Salmond.
Growing deficits in the US
The Republican Party’s accomplishment in gaining control of the Senate and Congress, together with President-elect Donald Trump’s victory in the 2024 election, is expected to facilitate Trump’s pledge to enact regulations that are supportive of cryptocurrency in the US.
The market has soared since Trump’s election, but investors are unsure if the incredible performance will last past inauguration day.
“Bonds will appear less appealing than real assets if we anticipate larger deficits and a cyclical period of higher inflation,” Russ stated.
“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.”
The 60/40 portfolio’s evolution
In response to a question on the potential effects of the spot Bitcoin BTC$100,241 exchange-traded funds (ETFs) on the conventional 60/40 portfolio, Russ stated that more people are shunning bonds in favor of 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 claimed he could forecast tailwinds for gold, Bitcoin, silver, and other assets farther out on the curve as those portfolio reallocations occurred.
“I believe that fixed income presents challenges, and we are currently in the early to middle stages of witnessing that,” he stated.
