ByteTree Sells Blockchain Equities in Q2, Warns AI Semiconductor Surge Mirrors 1999 Bubble

According to ByteTree's second-quarter investor letter published Sunday, founder Charlie Morris said the firm's Whisky portfolio sold its blockchain equity positions and switched to Berkshire Hathaway and other value stocks. Morris warned that "it is a matter of time before the bubble bursts," noting the semiconductor index gained $10 trillion in market cap over the past year to reach $16 trillion, matching the entire EuroStoxx 600. The firm positions Bitcoin alongside gold and value stocks as hard assets that outperform during inflationary periods.

Bitcoin's recent decline is being driven by higher real yields, ByteTree claimed, citing a macro environment matching the cryptocurrency's two largest contemporary drawdowns in 2018 (down 73.8%) and 2022 (down 64.3%). Despite the slump, on-chain transaction value surpassed $13.5 billion weekly—five times 2022 levels—signaling strong network fundamentals, the firm added.