[DigitalToday intern reporter Seung-a Yoo] Tavi Costa (타비 코스타), founder and chief executive of Azuria Capital (아주리아캐피털), said bitcoin is in a "very undervalued" zone. He projected that, contrary to a market mood in which even long-time supporters are giving up on bitcoin, bitcoin and silver prices will move sharply as the U.S. Federal Reserve's interest rate hiking cycle nears its end.

Bitcoin Magazine reported on Nov. 11 that Costa cited a weaker dollar and yield suppression as key macroeconomic variables that will affect financial markets over the next decade. He expected that environment to highlight the value of hard assets, including bitcoin and silver.

Costa cited the departure of even existing supporters from the market as the reason he judged bitcoin to be "very undervalued". He sees a gap between the current market mood of subdued investor sentiment and bitcoin's intrinsic value.

He also said silver is in a similar position to bitcoin. Costa projected that both assets could see large price swings when the Fed's rate hiking cycle ends.

His preferred hard-asset investments are silver and mining stocks. Costa described investing in mining stocks as an arbitrage opportunity from shifts in the macroeconomic environment. He also saw the growth of the artificial intelligence industry as closely tied to demand for metals. He stressed: "There is no AI revolution without metals."

He also pointed to how difficult it is to increase metal supply in the short term. Technology to produce gold in a laboratory will not be a threat to metal supply, he said, and high-grade silver mines also cannot be easily developed. He judged that a structure in which supply is hard to expand quickly even if demand rises could work in favour of silver and mining stocks.

Costa pointed to inflationary pressure, expanding government spending, a weaker dollar and changes in the interest-rate environment as key macroeconomic variables. Market attention is focused on whether bitcoin and silver will see large price moves as he forecasts as the Fed enters a phase of ending tightening.