Analyst Says Gold And BTC In Early Stages of Multi-Year Bull Cycles
Jan van Eck, the CEO of VanEck, says that both gold and Bitcoin (BTC) are likely to go on huge bull cycles that last for many years.
In a new interview with CNBC, van Eck says that the economy is likely to make gold and Bitcoin more valuable, which many investors see as a way to protect themselves from the value of their currencies going down.
He says that the problems with US banks have already made both assets worth more. And he says that the Federal Reserve will probably have to stop raising interest rates, which they have been doing to bring down inflation, because it is hurting the economy.
“I think we’re at the very beginnings of what could be a several-year cycle and gold and I also put Bitcoin in that category as well. I mean you have to love that finally as a gold investor, you’ve been rewarded over the last couple of weeks. Weakness in the banking system and gold rally. That’s why you own gold.
The reason I think it could be a two-year cycle is because I think that the Fed is close to the end of its tightening. The market is worried now about the consequences. And it could take a year or more for those consequences to roll through the commercial real estate market, the banking and lending dynamics. Maybe we have a shallow recession.”
Gold and Bitcoin are both getting more valuable for the same reasons, says the CEO of VanEck, which manages $69 billion in assets. Investors are adding these assets to their portfolios as a way to protect their money.
“I think all the speculation is out of both of those markets. There’s obviously no leverage in the Bitcoin market with all the regulatory crackdown and all the crises that we’ve had over the last year or so. So it’s up like 70% on the year, best-performing asset, again, rewarding the people that own Bitcoin for that thesis of wanting a hedge in their portfolios.”
He thinks that once the Fed stops raising interest rates and starts lowering them, the value of Bitcoin will only go up as more money flows into the markets.
“At some point, the Fed will start this easing cycle and you will want this in your portfolio. Short term there might be pullbacks and it might be a sideways year for this asset as well. But I do think when the cycle turns, it could be pretty exciting.”
Bitcoin is now worth $28,578. This is a 3% increase in the last 24 hours.
