Bitcoin has smashed through the $100,000 barrier last week, while gold (CM:XAUUSD) and silver continue their bullish streak, leaving investors questioning how long the momentum can hold. According to Cointelegraph, Brian Russ, chief investment officer at 1971 Capital, points to inflation concerns and growing U.S. deficits as driving forces behind the surge in real assets like Bitcoin and precious metals.
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“If we are expecting wider deficits and a cyclical period of higher inflation, then bonds are going to look less attractive compared to real assets,” Russ explained during the Decentralize with Cointelegraph podcast. This places Bitcoin, gold, and silver at the forefront for investors seeking alternatives to traditional fixed-income securities.
Bitcoin ETFs Reshape Portfolios
Russ also highlighted how Bitcoin ETFs are rewriting the rules for portfolio allocation. “Now folks are looking for alternatives,” he said, adding that gold, silver, and Bitcoin are carving out space in portfolios traditionally dominated by bonds.
As bonds face “headwinds,” according to Russ, Bitcoin and precious metals are emerging as strong contenders for investment dollars
Ethereum Joins the Spotlight
While Bitcoin grabs headlines, Russ sees Ethereum (ETH-USD) as undervalued despite its expanding role in traditional finance. He believes this could mark just the “early to middle stages” of a broader market shift, with crypto and metals leading the charge in a new investment era.
Investors can track their favourite cryptocurrencies on the TipRanks Crypto Center.
