Bitcoin and Gold: Flourishing Assets in the Face of Fiscal Problems
Veteran macro investor Luke Gromen suggests that Bitcoin (BTC) and gold could thrive amidst the mounting fiscal challenges in the United States. Gromen argues that both assets, considered “duration assets” with fixed supplies and the potential for their face values to rise, tend to shine during times of fiscal distress.
With relentless quantitative easing and potential shifts in Federal Reserve policies exacerbating fiscal issues in the US, Gromen believes that this environment will create favorable conditions for gold, oil, and Bitcoin.
“[Gold and BTC will do well] because they are simply duration assets with a more fixed supply and a face value that can rise,” he stated.
Gromen further explores the potential consequences of the BRICS nations launching a gold-backed currency. This move could undermine the dominance of the US dollar as the world’s reserve currency, potentially reshaping international trade and finance.
Bitcoin’s Bullish Momentum
The cryptocurrency sector is currently experiencing a bullish surge, led by Bitcoin. The digital asset has surpassed $28,000, igniting optimism among investors. A recent analysis by Cryptoinsightuk reveals that when Bitcoin’s weekly relative strength index (RSI) indicator crosses above 50 and then drops below this level, it tends to result in a remarkable 1,100% price increase for Bitcoin.
To achieve such a surge, certain conditions need to be met, including a supply squeeze and the introduction of a spot Bitcoin exchange-traded fund (ETF).
As Bitcoin’s price hovers around $27,539 with slight fluctuations over the past 24 hours but overall gains over the last seven days, investors are eagerly watching for signs of whether Bitcoin’s bullish momentum will continue in the coming weeks and months.
Hot Take: Bitcoin and Gold as Assets in Turbulent Times
Amidst fiscal challenges and potential shifts in global currency dynamics, Bitcoin and gold emerge as attractive assets. Their fixed supplies and the potential for their face values to rise make them duration assets that tend to thrive during times of fiscal distress. The US’s fiscal problems, combined with the possibility of BRICS nations launching a gold-backed currency, could further contribute to the appeal of these assets.
Moreover, Bitcoin’s current bullish momentum, fueled by factors such as its relative strength index (RSI) indicator and the prospect of a spot Bitcoin ETF, adds to the optimism surrounding its future performance. Investors are closely monitoring these developments, eagerly awaiting signs of whether Bitcoin will continue its upward trajectory.
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