Travis Kling, a former executive at Point72 Asset Management, believes there is a good chance that cryptocurrencies could be the best-performing asset class in 2019.
In a recent tweet, Kling, the founder and CIO of the crypto-focused Ikigai Fund, briefly reveals that he sees the unwinding of quantitative easing (QE) as a potential bullish driver for digital currencies.
Crypto has never existed during a bear market in traditional assets.
BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain
There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV
— Travis Kling (@Travis_Kling) December 23, 2018
“Crypto has never existed during a bear market in traditional assets. BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain,” Kling said. “There is a significant chance Crypto is the best performing asset class in 2019.”
Kling’s tweet is timely, as the Fed’s rate hike schedule has been the subject of much discussion. While many see the accelerating pace by which the Fed is raising hikes as a negative, including standing President Donald Trump, others deem it as a necessity after nearly a decade of easy money.
However, as recently detailed by David Rosenberg, the chief economist at Gluskin Sheff, the Fed could always change its mind on what to do next.
“When I tell people the Fed will be easing monetary policy in coming months, the view is met with derisions of laughter. But it is not a laughing matter,” Rosenberg told clients in a note Thursday. “These folks who sneer and shake their head just because of what the central bank is saying today are not students of history.”
Nonetheless, the uncertainty surrounding the Fed’s interest rate policy, ongoing trade tensions, a historically bad December for markets and an inverted yield curve, have many predicting a bear market is on the horizon for the equity market.
If this ends up being the case, it will certainly be an interesting time to be a crypto investor, as we may soon learn if digital assets are the 21st century’s new store of value.
More: Travis Kling’s Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.