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The gold price is once again approaching its local high of close to $1,700. Long-timeadvocate and Galaxy Digital CEO Mike Novogratz is expecting the rise to continue into the future.
As BeInCrypto reported last week, the price of gold took a serious hit as part of a wider selloff across global markets. After topping at almost $1,700, the precious metal plunged below $1,480. The CEO of Euro Pacific Capital, Peter Schiff, blamed the selloff on “clueless” investors, unaware of the “consequences of the current monetary and fiscal policy mistakes” for the drop.
Gold is falling because investors are clueless as to what is coming. Their mindset is similar to that of central bankers. They have no idea how bad the consequences of the current monetary & fiscal policy mistakes will be. When they figure it out en masse, #gold will skyrocket.
— Peter Schiff (@PeterSchiff) March 16, 2020
Following what many have described as the worst weeks of trading since the 2008 financial crisis, central banks around the world have started coming forward with their efforts to stimulate economies. As highlighted in the following tweet, the US Federal Reserve, European Central Bank, Bank of England, People’s Bank of China, IMF, and other major institutions will be creating trillions of dollars combined to prop up struggling markets.
IMF: $1 trillion
European Central Bank: $821B+
US Federal Reserve: $700B+
Peoples Bank of China $100B+
Bank of England England: $330B+
Reserve Bank of India: $13.5B+
Bank of Australia: $5.5B+
This is why Bitcoin was created.
— Bloqport (@Bloqport) March 23, 2020
Following recent news of “unlimited quantitative easing” from the US central bank, both gold and Bitcoin have responded positively. The Bitcoin price continues to rally following a massive recent price drop. At the time of writing, BTC has gained slightly more than 11 percent over the last 24-hours and trades just short of $6,650.
Meanwhile, gold also bounced after one of the worst short-term price moves in its own recorded price history. As Galaxy Digital’s Mike Novogratz highlights below, the precious metal is now “almost back to its highs.”
Gold is almost back to it highs. I believe it’s going much higher. Let’s go $BTC. Get on your horse and ride. Same thesis.
— Michael Novogratz (@novogratz) March 24, 2020
Mike Novogratz says that he thinks the precious metal will go a lot higher. Although not explicit above, it’s clear from his other statements that he thinks assets without the wildly fluctuating monetary policies of fiat currencies will benefit from the emerging macro environment.
$btc will continue to be volatile over the next few months but the macro backdrop is WHY it was created. This will be and needs to be BTC’s year.
— Michael Novogratz (@novogratz) March 22, 2020
With both Bitcoin and gold responding almost immediately to efforts to stimulate markets, it’s easy to draw the conclusion that central banks printing money has irked holders of fiat currency. Attacks on savings in the form of Most people who know anything about the economy have heard the word inflation. It is usually thrown around as a... More may well have caused them to seek out safe-haven assets. However, it’s equally feasible that the prices are moving because speculators believe central bank policy will encourage greater investment and they stand to make a quick buck by trading the expected moves.
It’s too soon to tell the cause of the recent gold and Bitcoin buying. However, as BeInCrypto previously reported, gold has performed well after a large selloff following global crises in the past. Between 2008 and 2011, gold rallied to its all-time high following a massive selloff coinciding with the global financial crisis. If the much-repeated “digital gold” analogy for Bitcoin holds true, both gold and Bitcoin may indeed benefit in the fallout of the recent market crashes.
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