VanEck CEO says gold and bitcoin (BTC) in early stages of new multi-year bull cycles
VanEck CEO Jan van Eck says both gold and Bitcoin (BTC) are likely to take off on major multi-year bull cycles.
In a new interview with CNBC, van Eck predicts that economic conditions will likely boost the value of gold and Bitcoin, which many investors see as a hedge against falling currencies.
He says US banking problems have already led to increased values for both assets. And he says the Federal Reserve will likely have to stop raising interest rates, which it has been doing to bring down inflation, because of the negative effects on the economy.
“I think we’re at the very beginning of what could be a multi-year cycle and gold, and I put Bitcoin in that category as well. I mean you’ve got to love it finally as a gold investor, you’ve been rewarded over the last couple of weeks .Weakness in the banking system and gold rally.That’s why you own gold.
The reason I think it could be a two-year cycle is because I think the Fed is near the end of its tightening. The market is now worried about the consequences. And it may take a year or more for these consequences to ripple through the commercial property market, banking and lending dynamics. Maybe we have a shallow recession.”
The CEO of VanEck, which has $69 billion in assets under management, says gold and Bitcoin are increasing in value for the same reasons. Investors turn to these assets to have a hedge in their portfolios.
“I think all the speculation is out of both of those markets. There’s obviously no leverage in the Bitcoin market with all the regulatory crackdowns and all the crises we’ve had in the last year or so. So it’s up like 70% year-over-year, best performing asset, again, rewarding people who own Bitcoin for that thesis of having a hedge in their portfolio.”
He predicts that once the Fed stops raising interest rates and starts lowering them, Bitcoin’s value will only rise as more liquidity enters the markets.
“At some point, the Fed will start this easing cycle, and you want this in your portfolio. In the short term, there could be a pullback, and it could also be a sideways year for this asset. But I think when the cycle turns, it could be quite exciting.”
Bitcoin is trading at $28,578, up 3% in the last 24 hours.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
