Bitcoin is Currently The Most Undervalued Asset: Crypto Management Firm’s Founder Travis Kling
“BTC is the most undervalued asset in the world today,”
while equities, bonds, precious metals, real estate, and venture capital are all near their all-time highs, says Ikigai founder Travis Kling.
Hitting New Peaks
The yellow metal, gold recently jumped to a fresh six-year high and is now trading near this level. Experts believe the prices may continue to go up due to uncertainties in the global market.
Many experts are even advising people to include the bullion in their investment portfolio amidst the weak economic outlook and fears of a recession.
The Dow Jones Industrial Average and the S&P 500 also hit a new peak in the past few months. But experts have predicted more upside in future for the market.
US government bond prices have also been rising as investors worry that a recession is looming. Rates on the benchmark 10-year US Treasury bond rose to 1.57% while the 30-year bond yield climbed to 2.07%. Yields move inversely to price.
It’s All ‘Don’t Call it QE’
“What really driving markets is the outlook for Fed policy,”
said Erik Bregar, head of FX strategy at the Exchange Bank of Canada.
On Tuesday, the Federal Reserve Chairman, Jerome Powell,
“basically admitted to another round of quantitative easing but is telling everybody ‘that’s not what it’s called.’”
“But no matter which way you look at it, the Fed is intervening. These are emergency type measure,”
“What we’re seeing right now is a Fed in flat-out denial.”
With equities, bonds, stocks, and precious metal hitting peaks,which is
“all made possible by QE,”
presents a “compelling” argument that Bitcoin is the most undervalued asset currently.
BTC surging as well
Bitcoin, however, has also been surging since Oct. 7, going from $7,760 to $8,666. Currently, BTC is trading at $8,500, up over 3% as per Coincodex.
"I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs."
-Jay Powell, today
Bitcoin is an insurance policy against monetary & fiscal policy irresponsibility.
Welcome to QE4.
— Travis Kling (@Travis_Kling) October 8, 2019
This surge in BTC price coincided with the central bank’s decision to increase its purchase of short term Treasury.
FED: starts QE
Also FED: This is definitely NOT QE
NEVER BELIEVE ANYTHING UNTIL IT IS OFFICIALLY DENIED
This is Bitcoin Rocket Fuel 🔥https://t.co/6fmJ9O03v4
— Ivan on Tech (@IvanOnTech) October 9, 2019
It is possible, this QE also drove BTC price up.
“If there was no such thing as QE, Bitcoin would be a science experiment in the closets of a bunch of comp sci nerds (God bless the nerds),”
Kling said in response to QE pushing bitcoin prices higher.
“It is bc of fiscal policy irresponsibility from central banks that an insurance policy against that irresponsibility is so badly needed.”