Gold will rise to new highs next year, according to a $7.5 billion hedge fund, but investors looking for fiat alternatives as the global debt bubble swells should. Find Bitcoin.
Troy Gayeski, Chief Investment Officer (CIO) and senior portfolio manager at hedge fund SkyBridge Capital, predicts that both gold and Bitcoin could rise in price even if the US Federal Reserve (Fed) decelerates. asset acquisition in the coming year.
“In the future, it is likely that gold will continue its uptrend, making new highs next year,” Mr. Gayeski emphasized.
But, speaking to Bloomberg last week, Gayseki said: “We would choose Bitcoin and cryptocurrencies in general because they have a higher upside potential.” Although cryptocurrencies are quite volatile, under the same market conditions investors can benefit from cryptocurrencies a little more than gold, Mr. Gayeski added.
World investors often compare the two assets with each other, in which former US Treasury Secretary Lawrence Summers once said virtual currencies can be likened to digital gold.
For now, investors are keeping a close eye on comments from US central bank officials as inflation soars and policymakers move closer to revoking some asset purchases. helped rescue the US economy from the COVID-19 crisis.
Inflation and the Fed’s tightening of monetary policy can both pose major risks to the value of the dollar, thereby increasing the attractiveness of fiat alternatives.
Mr. Gayeski said financial markets were less likely to discuss the possibility of the Fed tightening policy and even if the Fed announced this move, it would not be until 2022 for the US central bank to slow down the pace of asset purchases produce.
The world’s largest economy recently continuously showed good signs of recovery. But the Fed is still buying about $120 billion in Treasuries and other collateral every month. To date, the Fed’s balance sheet has grown to $8 trillion, or about a third of US gross domestic product (GDP), Bloomberg reported.
Gold and bitcoin have both seen big swings this year, as investors debate whether the world’s largest virtual currency is dampening demand for bullion.
Bitcoin jumped to an all-time high of nearly 65,000 USD/BTC in April, then plunged because of a “storm of tweets” by Tesla CEO Elon Musk and the control policy of virtual currencies of countries, including China. Country.
In contrast, gold fell sharply in March but recently reversed course and eliminated year-to-date losses. As of 7am on June 7 (Vietnam time), spot gold price fluctuated around $1,890 per ounce, while bitcoin price hovered around $36,263 per BTC.
The major Wall Street banks are deeply disagreeing about the relative value of the gold-bitcoin pair. Citigroup thinks gold is “losing its beauty” to cryptocurrencies, while Goldman Sachs says the two can coexist.
Contrary to SkyBrigde’s support of bitcoin, the virtual currency’s recent volatility has turned investors away and back to gold – a more attractive and stable haven asset. Ipek Ozkardeskaya, an analyst at Swissquote bank, said that the rally in gold prices coincided with a drop in bitcoin prices.
Sharing with Kitco News, Bloomberg Intelligence strategist Mike McGlone shared the same view: “Gold is returning to a stable trajectory while bitcoin plunges. It is possible that gold prices are in the early stages of a recovery cycle…”
Mr. McGlone hopes this momentum can pull gold prices back up to $2,000 an ounce. However, he urged investors to continue to monitor the movements of the virtual currency market instead of jumping to conclusions prematurely.
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According to Vietnambiz
Compiled by ToiYeuBitcoin