Liked your comment on "common sense returning back to the markets" as explanation for the renewed interest in gold. In a sense, the more solid crypto assets like Bitcoin should get bid like gold also if it that common sense starts to pick up... what do you think and how does that link with the BTC downside targets of 12k? Do you see probability that BTC just sets a bottom here at 18k-20k?
Hi Vince,
well, concerning cryptos, I'm a bit skeptic, just because I do not see any intrinsic value, what is the nature of the value for crypto currencies? Gold is a physical metal, naturally, it is rare, has unique features to safe the wealth. Cryptos... potentially unlimited amount of them. It is already few hundrends of them, very fragile - just pull the socket out and all cryptos disappear... this is roughly speaking.
As a market analysts I'm loyal to market tendencies. I prepare analysis, trying to help people to get best entry level, but personally - I will never invest in bitcoin or any other crypto as a safe haven assets, because I do not see any intrinsic value. People believe that it exists just because of image, advertising industry working around, making hype of cryptos, but in reality cryptos have no intrinsic value. This is arguable, I'm not pretending on absolute opinion, but this is just my view.
Concerning our 12K target... It should happen by technical reasons, not because BTC fundamentals will become worse. Fed just need liquidity to support the bond market and they will suck it from everywhere, including stocks. Cryptos will become among first one who will lose capitalization, because investors will sell them among first assets. Cryptos are worse on risk/reward component, compares to stocks.
Gold probably also will remain under pressure, but it has much better risk/reward and less volatility. Besides, it is classic safe haven asset, so it should show better resistance and should be among the first assets that reverse up.
