Asset Management Firm Founder Goes All-In Amid Rate Cut Bets and Bitcoin Panic Selloff

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At a time when most investors are gripped by fear and predicting further declines in Bitcoin (BTC), a veteran contrarian investor has taken a massive buying position against the market trend, emerging as a potential catalyst for a new rebound in the digital asset market.

On Feb. 21 (local time), asset management firm Eclectica Asset Management founder Hugh Hendry revealed that he is employing a so-called barbell strategy, combining bets on interest rate cuts with an allocation to Bitcoin in his portfolio. Hendry has built a reputation as a contrarian who challenges mainstream economics, notably posting a 31.2% return during the 2008 global financial crisis even as markets collapsed. He has also demonstrated exceptional foresight in tangible asset investments, turning a $7 million property acquisition into an asset valued at $35 million.

Hendry stated that “Bitcoin could reach $1 million in the long term,” applying his contrarian investment framework to the cryptocurrency. His outlook is grounded not in ideological conviction but in rigorous macroeconomic analysis. He points to the anticipated cycle of interest rate cuts, institutional capital inflows through regulated investment products, and the vast gap between Bitcoin’s market capitalization of roughly $2 trillion and gold’s approximately $20 trillion as key supporting factors.

Mounting pressure on the global monetary system further underpins the bullish case for Bitcoin. Prominent digital asset investor Lark Davis noted that Hendry’s move, as a respected macro investor rooted in traditional finance, could have significant influence beyond the crypto industry and into mainstream financial circles. Often seen as a representative of “old money” thinking, Hendry’s public endorsement is interpreted as a signal that institutional skepticism toward digital assets may be beginning to fade.

Analysts suggest that Hendry’s shift in stance could mark a pivotal moment in Bitcoin’s evolution from a fringe speculative asset to a recognized tool for macro asset allocation. Even as markets swing violently by hundreds of points amid heightened volatility, the confidence displayed by a seasoned investor serves as a strong psychological support for retail participants. In a market structure heavily skewed toward excessive downside bets, Hendry’s long-term accumulation strategy could act as a potential trigger for a powerful short squeeze.

Despite recording its worst start to a year on record, Bitcoin appears to be entering a new phase as experienced financial professionals like Hendry strategically build positions. As institutional skepticism gradually turns into trust, a key question is whether Bitcoin can close the gap with gold’s market capitalization and solidify its status as a digital store of value. Global investors are closely watching whether, as Hendry predicts, Bitcoin can break through macroeconomic uncertainty and begin its march toward the $1 million milestone.

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