The CEO of global investment manager VanEck is anticipating new all-time highs for Bitcoin (BTC) ahead of a likely interest rate cut from the Federal Reserve.
In a new interview on CNBC Television, Jan van Eck says that Bitcoin, much like gold, is largely tied to interest rate cycles.
The veteran investor says that interest rates are “headed down,” which has historically been bullish for Bitcoin.
“It’s the macro. The stores of value that don’t generate interest – which is why investors like Warren Buffet don’t like them at all – but they behave really in relation to interest rates. That’s the big cycle, and interest rates are headed down, directionally speaking.
So the macro behind Bitcoin and gold are very strong. By the way, they kind of do perform similarly. They both peaked in 2021, they’ve both been rallying this year, obviously, Bitcoin way more than gold for different reasons.”
Despite Bitcoin being up nearly 170% on the year, Van Eck says that there are still significant gains to be had. The investor predicts new all-time highs within the next year, perhaps on the back of Bitcoin’s halving, which is expected for April of 2024 and will slash miners’ BTC rewards in half.
“No, [the big gains are not over] because it’s growing up. It’s like a child that’s growing up.
You can argue about it being in a bubble but… It bubbled in 2017 but then it hit all-time highs in 2021, so nothing has ever been a bubble that then has outperformed itself.
So I fully expect in this cycle – and you have this halving thing happening in April which is great technically for Bitcoin – I expect all-time highs in the next 12 months.”
Bitcoin is trading at $42,034 at time of writing.
I
Generated Image: Midjourney
Credit: Source link
