Bitcoin has many investors looking at it. It has recently reached 2019 high of $9,400 and no other asset class is even close surpassing the gains made by Bitcoin. Bitcoin is up 140% since the start of the year. Many people are trying to speculate at why that is the case with reasons varying from the U.S./China trade war to Facebook’s new stablecoin.
According to Mati Greenspan of eToro, the Federal Reserve might be the biggest actor of them all. When Federal Reserve officials meet this week they are expected to clear the way for a July interest rate cut by downgrading their economic forecast.
Oil prices fell considerably into the bear market territory after the US factory and housing data showed the world’s largest economy is slowing down faster than expected. The trade war is starting to dwindle away at US data. The oil markets are now not balanced mainly due to falling demand.
The US economy is slowing down and expectations for the signal of pre-emptive policy easing has supported higher gold prices. Gold’s rally is on pause but could see bullish momentum return as long as the Fed has clear communication in signaling the end of its patient period.
Many people try to pit Bitcoin against gold while in reality, they are on the same side of the war against fiat currencies. In doing so, the Bitcoiners are battling with gold bugs trying to make the other side see why their side is wrong but in doing so both sides are losing a valuable ally.
Bitcoin appears to have prevented any major selloffs, as the core argument that mainstream acceptance and security concerns will derail institutional investors, has been alleviated.