In theory, both Bitcoin and Gold should thrive in times of geopolitical conflicts. Like exactly the ones we are having with the Russia Ukraine encounter and Israel Hamas conflict.
Because both Bitcoin and Gold to a large extent, 40 % in the case of Bitcoin and 75 % in the case of gold, according to Wolfteam Ltd.'s view, act as safe haven and store of wealth. And both safe havens and store of wealth are sought after in times of geopolitical tensions.
Unfortunately, Bitcoin and Gold's price are not going up as much as expected.
Mainly because of government intervention. The US Department of Justice and Securities and Exchange Commission, SEC pending lawsuits are exerting downward pressure on Bitcoin, while there are rumors and newspaper articles, even convictions that some banks are trying to manipulate the precious metals markets. In addition, the Federal Reserve has raised its key rate target to 5-1/2 %, which is exerting downward pressure on gold and Bitcoin, cryptocurrencies' prices. Wall Street banks are also partly to blame for the low Bitcoin price due to slow cryptocurrencies adoption.
The law must be upheld, so the Department of Justice and the SECs lawsuits must serve their purpose to clean the system out of bad actors. Once we have a cleaner and a leveler playing field and interest rates start coming down again, gold and Bitcoin, cryptocurrencies will shoot up in price, according to Wolfteam Ltd.'s projections and estimates.
But for now, even with geopolitical encounters, Bitcoin and Gold's prices remain stagnant, mainly because of the Federal Reserve targeting relatively higher interest rates which sap financing due to prohibitive cost from riskier technology and mining projects.
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