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The CEO of global investment management firm VanEck has announced that he expects all-time high levels for the leading cryptocurrency, Bitcoin (BTC), ahead of a possible interest rate cut by the Federal Reserve.
Bitcoin and Gold Comparison
In a recent interview with CNBC, Jan van Eck noted that Bitcoin, much like gold, is largely dependent on interest rate cycles. The experienced investor claimed that interest rates are falling, which historically has been bullish for Bitcoin. The prominent CEO stated:
These macro non-interest bearing stores of value really act according to interest rates. This is the big cycle, and if we talk about direction, interest rates are going down. So the macro behind Bitcoin and gold is very strong and they are performing similarly. Both reached their peak in 2021 and both are on the rise this year, though obviously Bitcoin could rise much more than gold for different reasons.
“Time for ATH in BTC!”
Despite Bitcoin, the flagship of the markets, showing an increase of nearly 170% over the year, Van Eck argues there are still significant gains to be made. The renowned investor highlighted the upcoming year, which may see all-time highs following the Bitcoin halving expected in April 2024, an event that will cut the BTC rewards for miners in half. In his final remarks, the CEO said:
No, the big gains are not over yet. Because growth is ongoing. It’s like a growing child. You could argue it’s in a bubble but… it ‘bubbled’ in 2017 but then reached all-time highs in 2021, so nothing has been a better performing bubble than that. Therefore, I fully expect it in this cycle and this halving event which is technically great for Bitcoin will happen in April. I expect all-time highs within the next 12 months.
