VanEck CEO Jan van Eck said that both gold and bitcoin He says that (BTC) could enter major multi-year bull cycles.
In a new interview with CNBC, van Eck said economic conditions are what many investors see as a hedge against depreciating currencies. Gold and predicts that Bitcoin will increase its value.
He says banking problems in the US are already causing the value of both assets to rise. And he says the Federal Reserve will likely have to stop raising interest rates to reduce inflation because of the negative effects on the economy.
“I think we are at the beginning of a few years cycle and gold and I put Bitcoin in that category as well. I mean, finally as a gold investor you have to love being rewarded for the past few weeks. Weakness in the banking system and the gold rally. That’s why you have gold.
The reason I think this could be a two-year cycle is because I think the Fed is nearing the end of tightening. The market is now worried about the consequences of this. And it may take a year or more for these results to reflect on the commercial real estate market, banking and credit dynamics. Maybe we will have a shallow recession.”
The CEO of VanEck, which has $69 billion in assets under his management, says that gold and Bitcoin are gaining in value for the same reasons. Investors turn to these assets to have a hedge in their portfolios.
“I think all the speculation came out of both these markets. It is clear that there is no leverage in the Bitcoin market due to the pressure of regulatory institutions and all the crises we have experienced in the past year. Therefore, it increased by 70% during the year. The top-performing asset, again, rewards people who have Bitcoin in their portfolio for the thesis to seek a hedge.”
He predicts that once the Fed stops raising interest rates and starts lowering them, the value of Bitcoin will increase as more liquidity enters the markets.
“At one point Fed this will start the relaxation cycle and you will want it in your portfolio. There may be pullbacks in the short term and it could be a flat year for this asset as well. But I think it can be pretty exciting when the cycle turns.”
Koinfinans.com As we reported, Bitcoin is trading at $ 28,578 with a 3% increase in the last 24 hours.