• Vaneck CEO Jan van Eck has predicted a bull cycle for gold and bitcoin, predicting that the Federal Reserve is close to ending their tightening.
• Van Eck believes that this could be a several-year cycle, as the market worries about the consequences of Fed rate increases.
• Bitcoin has outperformed all other assets this year, rewarding investors looking for a hedge in their portfolio.
Vaneck CEO Predicts Bull Cycle for Bitcoin and Gold
The CEO of investment management firm Vaneck, Jan van Eck, has predicted a bull cycle for gold and bitcoin. He believes that this could be a several-year cycle as the market worries about the consequences of Federal Reserve (Fed) rate increases. Van Eck also pointed out that bitcoin has surged nearly 70% this year and rewarded investors looking for a hedge in their portfolio.
Expects Fed Tightening to End Soon
Van Eck shared his prediction with CNBC last week, stating that „we are at the very beginnings of what could be a several-year cycle in gold, and I also put bitcoin in that category as well.“ The executive further explained that „it could be a two-year cycle“ because he believes that „the Fed is close to the end of their tightening.“ Last week, the Federal Reserve raised interest rates by 25 basis points but some people expect them to cut rates soon due to concerns about commercial real estate markets and banking dynamics which may lead to shallow recession.
Gold Rallied Due To Banking System Weakness
As mentioned by Van Eck himself when asked whether gold should be viewed as an investment or temporary trade,“Finally, as a gold investor, you’ve been rewarded over the last couple of weeks. Weakness in the banking system and gold rallied. That’s why you own gold“. According to Pantera Capital we’re already in next bull market cycle for bitcoin while economist Peter Schiff said that Fed has already returned quantitative easing whether they admit it or not.
Reward For Owning Bitcoin
Van Eck added regarding both markets (gold & bitcoin) “I think all speculation is out” He also mentioned how owning bitcoin rewards those who want hedge in their portfolio: “Bitcoin has rewarded ‚the people that own bitcoin‘ for wanting ‚a hedge in their portfolio‘.
Conclusion
In conclusion it looks like Vaneck CEO Jan van Eck predicts Gold & Bitcoin will have Bull Cycle soon due to expected changes from Fed policy leading to low interest rates & quantitative easing along with banking system weakness leading to increase demand on Gold & Bitcoin thus providing reward on invested asset classes such as these two commodities