In brief

  • Cryptocurrencies are "dramatically undervalued" compared to other stores of value, said Eric Peters.
  • The CEO of One River noted that his company has been anticipating the "late-cycle activity” we are seeing today.
  • The coronavirus pandemic became a perfect "driver" that boosted cryptocurrencies, he added.

Bitcoin and other cryptocurrencies are “dramatically undervalued” while the worldwide coronavirus pandemic has become a perfect “driver” for them to rise, Eric Peters, chief executive of One River Asset Management, told Bloomberg today.

"[Digital assets] are dramatically undervalued relative to some of these other stores of value,” said Peters, adding, “That's what makes us excited about these—it's an undervalued asset for that macro backdrop.”

Peters explained that being a macro investor his entire career, he first and foremost looks at macro indicators and not so much at technical ones, but even then the technology of cryptocurrencies “continually astounds us in terms of where it leads us.”

“I have seen a whole range of emerging second-layer applications that will be built upon this technology platform, and they are super promising. I’ve seen enough to know that, in essence, tomorrow is going to look better than today. And think when you’re investing, it’s incredibly important,” Peters added.

According to him, One River has been anticipating “this late-cycle activity,” and the coronavirus pandemic created an expansion that’s “in excess of what we or almost anyone would have imagined possible.”

“The fact that it’s conjoined with monetary policy at this point, in a sense we’re issuing enormous amounts of debt, we’re having our central bank buy them, that’s the dynamic that we have been anticipating. It’s the scale of it, it’s just so profound, that’s really the driver,” Peters explained.

As Decrypt reported, One River invested an undisclosed amount of funds in cryptocurrencies in early January—which very well might have been “one of the largest digital asset trades in history.”

At the time, Peters pointed out that holding digital assets allows investors to “align” themselves with macro trends.

He said, “Holding these assets over the long-term aligns yourself with the macro mega-trends of technological advance and currency debasement, both of which appear to be accelerating. And naturally, where this all leads, and to what valuations, will be determined by our collective imagination."