Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
U.S. investment bank Oppenheimerâs analyst says gold is âextendedâ and has ârun up a bit,â bringing attention to bitcoin instead. He sees the cryptocurrency reversing its downtrend from the $20K peak, benefiting from the dollarâs weakness.
Oppenheimer Analyst on Bitcoin vs Gold
Ari Wald, head of technical analysis at Oppenheimer, a major American investment bank and financial services company, âhighlightedâ bitcoin this week on CNBCâs program Trading Nation entitled âGold vs. Bitcoin.â
He explained: âWeâve been recommending gold as a way to play the expansion of the Fedâs balance sheet ⊠Itâs actually the high momentum commodity, it ranks highest above all commodities out there in terms of momentum.â While pointing out that gold is âextendedâ and has ârun up a bit,â the analyst affirmed, âWe do recommend sticking with it.â Nonetheless, he added:
I think itâs worthwhile to highlight bitcoin instead which isnât as extended ⊠Bitcoin is reversing its downtrend dating back to its 2017 peak. If you are a long-term holder, this is the type of action youâd like to see.
Bitcoin is currently trading at about $10,970, having risen 17% this week and 54% this year. Its price is still well below its December 2017 peak of nearly $20,000. Wald noted that the cryptocurrencyâs recent breakout is setting up for more gains ahead and bitcoinâs long-term trendline suggests it has plenty of room to run. Meanwhile, the price of gold has hit record highs this week, rallying 8% this month and 28% this year.
Both gold and bitcoin are benefiting from the weakness of the U.S. dollar, Wald continued. Michael Binger, president of Gradient Investments, concurred with Wald about the dollar but he favors gold over bitcoin.
Binger opined: âBetween the two I would really lean on the gold side here. When you think about it, it is really a Goldilocks environment for gold investors right now. I mean, you have a weak U.S. dollar, you have negative real interest rates. All of this is based on the prospect of rising inflation.â While agreeing with the Oppenheimer analyst that bitcoin is a momentum play, Binger still believes that it is not a âvalid currency yet.â
What do you think about the Oppenheimer analystâs view? Let us know in the comments section below.
The post Major Investment Bank Oppenheimer Bullish on Bitcoin, Highlights Instead of Gold appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.