3 - 5 minute read
Jan van Eck, CEO of VanEck, has stated that both gold and Bitcoin (BTC) are in the early stages of new multi-year bull cycles. In an interview with CNBC, van Eck highlighted the economic conditions that are likely to increase the value of these assets.
Many investors view gold and Bitcoin as a hedge against depreciating currencies. The CEO of VanEck states that US banking troubles have already led to an increase in the value of both assets. He predicts that the Federal Reserve will likely have to stop raising interest rates, which they have done to draw down inflation, due to the adverse impacts on the economy.
Van Eck believes that we are at the very beginnings of what could be a several-year cycle for both gold and Bitcoin. The Fed is close to the end of its tightening, and the market is worried about the consequences. It could take a year or more for those consequences to roll through the commercial real estate market, the banking and lending dynamics, and we might have a shallow recession.
Gold and Bitcoin as a Hedge in Portfolios
The CEO of VanEck, which has $69 billion in assets under management, says that gold and Bitcoin are increasing in value for the same reasons. Investors are turning to these assets to have a hedge in their portfolios. He thinks all the speculation is out of both markets, and there’s obviously no leverage in the Bitcoin market with all the regulatory crackdown and crises that we’ve had over the last year or so.
Bitcoin’s Value Will Soar with More Liquidity
Van Eck predicts that once the Fed stops raising interest rates and starts to lower them, Bitcoin’s value will only soar as more liquidity enters the markets. He thinks that when the cycle turns, it could be pretty exciting. Bitcoin is trading for $28,578, up 3% in the past 24 hours.
Advice to Traders
Investors looking for a hedge against depreciating currencies could turn to gold and Bitcoin. However, it’s important to remember that trading carries high risk. As a trader, you should always do your research and understand the risks involved before investing in any asset. It’s also necessary to remember that we are not financial advisors, and this article is only for informational purposes.
Conclusion
VanEck CEO Jan van Eck predicts that both gold and Bitcoin are likely to take off on huge multi-year bull cycles. He highlights the economic conditions that are likely to increase the value of these assets. Van Eck believes that we are at the very beginnings of what could be a several-year cycle for both gold and Bitcoin. He predicts that once the Fed stops raising interest rates and starts to lower them, Bitcoin’s value will only soar as more liquidity enters the markets. Investors looking for a hedge against depreciating currencies could turn to gold and Bitcoin. However, trading carries high risk, and it’s important to remember that we are not financial advisors.
