bitcoin (btc) and gold, two seemingly divergent assets, find common ground in the eyes of veteran macro investor Luke Gromen. In a recent interview, Gromen suggests that these assets could flourish as fiscal challenges in the United States continue to increase.
Gromen’s argument revolves around the idea that bitcoin-and-gold-can-flourish-as-us-struggles-with-massive-fiscal-problems-macro-investor-luke-gromen/” target=”_blank” rel=”nofollow”>both gold and bitcoin They are “duration assets” with fixed supplies and the potential for their nominal values to increase. In times of fiscal hardship, these assets tend to shine.
As the United States faces fiscal problems exacerbated by relentless quantitative easing and potential Federal Reserve policy changes, Gromen believes this environment will create fertile ground for gold, oil and bitcoin.
“(Gold and btc will do well) because they are simply duration assets with a more fixed supply and face value that can increase.” he stated.
“They do well when one nation has a fiscal problem, and when the world’s reserve currency issue and its allies have fiscal problems, and theirs is at least as bad or probably worse than the others – even Europe – then it’s really nice”. for gold and bitcoin.”
The BRICS and the remodeling of the dollar
Gromen also delved into the possible ramifications of the launch of a gold-backed currency by the BRICS countries (Brazil, Russia, India, China and South Africa). Such a move could undermine the US dollar’s historic position as the world’s reserve currency. The prospect of a gold-backed currency gaining ground among these major economies could weaken the dollar’s dominance in international trade and finance.
Meanwhile, the cryptocurrency sector is experiencing a bullish surge, with bitcoin leading the way. It has surpassed the critical psychological threshold of $28,000, generating optimism among investors. In particular, Cryptoinsightuk, a pseudonymous cryptocurrency trading analyst, has conducted an insightful analysis of the bitcoin Relative Strength Index (RSI) indicator.
bitcoin moving halfway to the $28K region. Chart: TradingView.com
bitcoin‘s bullish momentum
bitcoin-about-to-skyrocket-1100-expert-analysis/” target=”_blank” rel=”nofollow”>Cryptoinsightuk Analysis tracks cases where bitcoin‘s weekly RSI crossed above the 50 mark (green) and then fell below this level (red). The expert found that, on average, these events led to a notable bitcoin price increase of 1,100%. Such a surge could become a reality under the right circumstances, including a reduction in supply and the introduction of a spot bitcoin exchange-traded fund (ETF).
As bitcoin” rel=”nofollow”>The price of bitcoin Currently hovering around $27,539 with a 1.2% drop in the last 24 hours but a 4.9% gain in the last seven days, investors are closely monitoring these developments, eagerly awaiting signs of whether the bullish momentum of bitcoin will persist in the coming weeks and months.
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