Malaya Ruiz
During a recent appearance on CNBC’s “Closing Bell Overtime,” Jan van Eck, CEO of VanEck, a prominent global investment management firm, discussed Bitcoin’s recent price movements and stated that he remains strongly optimistic about the future prospects of both the cryptocurrency and gold.
He said one of the key attributes of the cryptocurrency industry is its tendency towards volatility, where fluctuations in value are a common occurrence. However, he also pointed out that the sudden surge and subsequent drop of Bitcoin was unconventional yet foreseeable given its status as a high-risk investment. The CEO expressed his positive view of the long-term potential of Bitcoin, citing factors like the halving event and Federal Reserve policies.
When asked about his insight into the current price movements of Bitcoin in relation to inflation and expectations around yields, van Eck said he’s “very bullish,” indicating that events like the Federal Reserve easing are “like fuel for Bitcoin.”
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“We’ve seen only a 20% correction… in the Bitcoin price, and that’s kind of normal in the bull market. So, at VanEck… we’re long-term investors, and all the ETFs pretty much have seen inflows, including last month when the price was down 10%,” he said during the interview.
He added that his bullish stance on gold is reinforced by the initial stages of the gold buying trend, whereas U.S. ETFs have yet to see significant inflows, with foreign banks being the main buyers of the latter.
This statement aligns with VanEck’s announcement on Thursday, indicating that gold prices are skyrocketing due to investors flocking to the precious metal as a safe haven asset, reaching a record high of over $2,300. This trend is also benefiting gold mining companies, as the heightened demand for gold is translating into higher sales and profits for them.
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According to van Eck, the decreasing appeal of traditional safe-haven currencies like the Swiss franc, euro, and yen has resulted in investors turning to gold and Bitcoin as more stable options. He also said impending fiscal dilemmas could be resolved after the presidential election as the Federal Reserve’s easing strategies persist, aiding the performance of both gold and Bitcoin.
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MALAYA RUIZ
Malaya is dedicated to helping individuals share meaningful narratives about crypto, blockchain, and future tech. Her extensive experience in editing, copywriting, and publishing gives her a deep understanding of the craft of storytelling and collaboration, which she channels through Shiba Inu's official publications. Malaya owns two dogs and therefore has a special admiration for the Shiba Inu breed.
