Both bitcoin and gold have risen sharply as the US Congress debates a further stimulus program to support the economy in the wake of the pandemic. Nevertheless, a large investment bank puts cryptocurrencies higher than gold.
Bitcoin and gold
Oppenheimer analyst says now is the right time to invest in bitcoin.
BTC hit a high in about 11 months on Tuesday, which is very important considering it has been stagnant in the past two months.
On the other hand, gold broke above its nine-month high and reached a new ATH. Investors are in a rush to put their money in safe places as geopolitical tensions and fears of a second wave of the pandemic continue to rise. Moreover, most economists expect central banks and governments to push for further stimulus measures and support inflationary trends.
While most traditional investors bet on the precious metal on the assumption that it is more trustworthy in the face of global crises like this one, the Oppenheimer investment bank is more bullish on bitcoin. Ari Wald, head of technical analysis at the bank, told CNBC:
“We recommend gold as a way to expand your balance sheet [Rezerwy Federalnej]. In fact, it is a very dynamic commodity, which in terms of dynamics ranks highest there among all commodities. ‘
The analyst argued that Bitcoin has experienced a major breakthrough, which could provide it with more benefits in the long run. He also noted that the cryptocurrency is reversing its downtrend that began in 2017.
“If you are a long term holder, this is the type of activity you would like to see.”
– he concluded.
Bitcoin is still a long way from its $ 20,000 ATH, suggesting it still has plenty of room for growth.
There are also differing opinions
While Bitcoin has outperformed this year, some investors would still choose gold. Michael Binger, president of investment advisor of Gradient Investment, said that he is choosing a precious metal instead of bitcoin. He stated:
“Between those two, I would really lean on the gold side here. When you think about it, now everything seems to be working to the advantage of gold investors. I mean, you have a weak dollar, you have negative real interest rates. All of this is based on the prospect of rising inflation.