With Wall Street growing more uncertain by the day, Bitcoin is swiftly increasing profits. Because of the crypto’s recent surge in value, many investors are calling it a safe haven, amidst the volatile shifts of Wall Street
With Wall Street growing more uncertain by the day, Bitcoin is swiftly increasing profits. Because of the crypto’s recent surge in value, many investors are calling it a safe haven, amidst the volatile shifts of Wall Street
Boockvar has also stated that Bitcoin seems to be where the early birds flock, since it started jumping in price even before gold.
Peter Boockvar, one of the leading crypto bears of today has stated on this:
“I watch bitcoin as a signal, as an indicator, not because I want to own it. Over the last couple weeks, we’ve seen this sharp rise in bitcoin, and to me, that was saying something in terms of what markets were thinking about what the Fed was going to do [and about] the turmoil created by the threatened tariffs.”
What Boockvar is referring to is the anticipated Federal Reserve decision to cut interest rates two times over before the year ends. With Donald Trump’s trade war slowly picking up pace, many investors are choosing to move to safe investments, such as gold. Similarly, Bitcoin has also gained traction as such a safe avenue of profit.
Boockvar has also stated that Bitcoin seems to be where the early birds flock, since it started jumping in price even before gold. In a recent interview, he said:
“I still think it’s in its infancy, and I only bring it up here because we saw a short move over the past month that I was thinking, well something is causing this, I don’t recommend bitcoin in either direction because I don’t really care for it in terms of an asset, but I do care for it as a signaling mechanism that I think was a tipoff to this bounce in gold. From here on, can bitcoin be a safe haven as much as gold? I don’t know yet,” he stated. “But, again, I’d still rather own gold either way.”
It’s worth noting that Boockvar has been quite against crypto in the past, so such admissions of quality only speak for the success of Bitcoin.
With gold hitting its three-month peak this June, correlating with the rise of the U.S. dollar, it’s an interesting question whether Bitcoin will hit such a peak as well. This is an especially relevant topic in light of the fact that these two usually move inversely from each other.
“Really, the sole bear case on gold is a stronger dollar, and if they both rally together, well, then there’s no bear case anymore,” Bookvar said. “And if the dollar actually falls, well, then gold can really get its legs.”
Now, it’s possible that this plays out precisely like Boockvar believes it will. He thinks that the situation will perform a “dead-cat bounce,” meaning that it’ll be a short-lived pump shortly after a decline in the market.
“For now, this is just a dead-cat bounce back to around the 2,800 level until you get clarity on China. I don’t think Mexico goes anywhere. I think there’s no way we would be so stupid to put those tariffs on. To me, it’s all about China right now, and I think, from what I see and hear, this thing is going to last a long time.” Boockvar voiced his opinions on current politics.
