The CEO of investment management firm Vaneck has predicted a bullish cycle for gold and bitcoin. “We are at the beginning of what could be a multi-year cycle in gold, and I put bitcoin in that category as well,” the executive said, adding that the Federal Reserve is “near the end of its adjustment.” ”
Bullish cycle for gold and Bitcoin
Jan van Eck, CEO of investment management firm Vaneck, shared his prediction on gold and bitcoin in an interview with CNBC last week. His firm has $69 billion in assets under management.
When asked if gold, at its current levels, should be viewed as an investment or a temporary trade that can bring additional profit, he replied:
We are at the beginning of what could be a multi-year cycle in gold, and I put bitcoin in that category as well.
“Finally, as a gold investor, you have been rewarded in recent weeks. The weakness of the banking system and gold rebounded. That’s why you have gold,” the executive continued.
The Vaneck CEO further explained that “it could be a two-year cycle” because he believes that “the Fed is near the end of its tightening.” The executive added: “The market is concerned now about the consequences and it could take a year or more for those consequences to play out in the commercial real estate market, banking and credit dynamics, (and) we may have a shallow recession.” . He elaborated:
At some point, the Fed is going to start to loosen up, and that’s when gold is really going to party.
Speaking of gold and bitcoin, the Vaneck executive opined:
I think all the speculation is out of both markets.
Van Eck noted that bitcoin is up nearly 70% this year, outperforming all other assets, and has rewarded “people who own bitcoin for that thesis of wanting a hedge in their portfolio.”
Last month, Pantera Capital said that we are already in the next bitcoin bull market cycle. Last week, the Federal Reserve raised interest rates by 25 basis points. Some people expect the Fed to cut rates soon, including billionaire Jeffrey Gundlach. However, Fed Chairman Jerome Powell stated that rate cuts are not in the Fed’s base case. Economist Peter Schiff said the Fed has already gone back to quantitative easing, whether they admit it or not.
Do you agree with Jan van Eck? Let us know in the comments section.
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