- In a recent interview with Gromen, he suggests that these assets could grow if financial difficulties continue to increase in the United States.
- In an environment where financial troubles emerge, Gromen believes that this environment could create a favorable ground for gold, oil, and Bitcoin.
- Gromen also touched upon the possible consequences of BRICS countries (Brazil, Russia, India, China, and South Africa) launching a gold-backed currency.
If financial difficulties persist in the United States, Gold and Bitcoin could come to the forefront: How will this happen? Detailed explanation!
Financial Troubles Could Strengthen Bitcoin and Gold
While Bitcoin (BTC) and gold are considered seemingly different assets, macro investor Luke Gromen sees them as having a common foundation. In a recent interview with Gromen, he suggests that these assets could grow if financial difficulties continue to increase in the United States.
Gromen’s argument is based on the idea that both gold and Bitcoin are “finite assets” with the potential for rising nominal values. These assets tend to shine during times of financial hardship.
In an environment where the United States is grappling with financial troubles exacerbated by ongoing quantitative easing and potential changes in Federal Reserve policies, Gromen believes that this environment could create a favorable ground for gold, oil, and Bitcoin. Gromen stated:
“Gold and BTC will perform well because they are assets with a more stable supply and are futures assets that can have a rising nominal value.”
Gromen continued, “When a country has a financial problem, they perform well, and when the world’s reserve currency has problems and its allies are having financial problems, and theirs are at least equally bad or probably worse—even from Europe—then it’s really good for gold and Bitcoin.”
Gromen also touched upon the possible consequences of BRICS countries (Brazil, Russia, India, China, and South Africa) launching a gold-backed currency. Such a move could potentially challenge the long-standing position of the U.S. dollar as the world’s reserve currency. The possibility of a gold-backed currency becoming attractive among these major economies could weaken the dominance of the dollar in international trade and finance.
Bitcoin’s Bullish Momentum
Cryptoinsightuk’s analysis tracks Bitcoin’s weekly RSI surpassing the 50 level (green) and falling below it (red). The expert found that such events have, on average, led to a significant price increase of about 1,100% for Bitcoin. Such a surge could become a reality under favorable conditions, including supply constraints and the introduction of a spot Bitcoin exchange-traded fund (ETF).
While Bitcoin’s price is currently hovering around $27,450 with a 1.2% decrease in the last 24 hours, it has gained 4.9% in the past seven days. Investors are closely watching whether Bitcoin’s bullish momentum will continue in the coming weeks and months.
