A Bitcoin supply shock may be around the corner, according to Troy Gayeski, a co-chief investment officer and senior portfolio manager at SkyBridge Capital.
Gayeski told Bloomberg on Monday that on-chain signals suggest that Bitcoin “hodlers” have resumed accumulation with the intention of holding the flagship currency for a long period. He opined that these proponents of Bitcoin are gobbling the asset from speculators who got into the market at peak prices. According to him:
When we look right now at the on-chain, data what is basically telling you is a lot of the strong holders are reasserting themselves and accumulating from those that got into the market late last year. And that it is setting itself up for some type of supply shock, very similar to what we had last October/November.In mid-May, Bitcoin rose to a new all-time high of nearly $65,000. However, the leading crypto has since crashed to the $30,000 region and has been struggling to reclaim previous highs. Gayeski stated that Bitcoin will always “be a volatile” asset, but its “risk-reward is now skewed again to the upside”
Meanwhile, SkyBridge Capital, a hedge fund with $7.5 billion in assets under management is still bullish on BTC. Gayeski said that the firm had stepped backed a little before the market crash and reallocated some of the funds to Ethereum.