It has been reported that Bitcoin will be hitting new ATHs soon while we will be seeing an interest rate cut as well. Check out the following reports about this below.
Bitcoin to see new ATH
The CEO of VanEck, a global investment management firm, believes that Bitcoin (BTC) will reach new all-time highs due to an expected interest rate cut from the Federal Reserve.
In an interview with CNBC Television, Jan van Eck stated that Bitcoin, much like gold, is strongly influenced by interest rate cycles.
He further explained that interest rates are currently decreasing, which has historically been a positive sign for Bitcoin.
As a seasoned investor, Jan van Eck’s statement suggests that the direction of interest rates is an important factor to consider when investing in 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.”
According to Van Eck, even though Bitcoin has already gone up by almost 170% this year, there are still considerable profits to be made.
The investor anticipates that Bitcoin will reach new record highs within the next year, possibly due to the upcoming halving event in April 2024. The halving event will cut the bitcoin mining 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.
