U.S. investment bank Oppenheimer’s analyst claims gold is “extended” and contains “run up a bit,” bringing focus to bitcoin instead. He sees that the cryptocurrency turning its downtrend in the $20K summit, profiting from the dollar’s weakness.
Oppenheimer Analyst on Bitcoin vs Gold
Ari Wald, head of technical evaluation in Oppenheimer, a significant American investment bank and financial solutions firm, “highlighted” bitcoin this week on CNBC’s program Trading Country entitled “Gold vs. Bitcoin.”
He clarified: “We’ve been recommending gold as a way to play the expansion of the Fed’s balance sheet … It’s actually the high momentum commodity, it ranks highest above all commodities out there in terms of momentum.” While pointing out that gold is “extended” and contains “run up a bit,” the analyst confirmed, “We do recommend sticking with it.” However, he included:
that I think it’s rewarding to highlight bitcoin rather which isn’t as long … Bitcoin is turning its downtrend dating back into its own 2017 summit. If you’re a long-term holder, this is the kind of activity you’d like to see.
Bitcoin is now trading at roughly $10,970, having climbed 17% per week and 54% this past year. Its price remains well below its December 2017 summit of almost $20,000. Wald noted the cryptocurrency’s recent breakout is now putting up for more profits ahead and bitcoin’s long-term trendline indicates it has lots of space to operate. Meanwhile, the price of gold has hit record highs this past week, rallying 8% this past month and 28% this past year.
Both golden and bitcoin are profiting from the weakness of the U.S. buck, Wald continued. Michael Binger, president of Gradient Investments, agreed with Wald in regards to the buck however, he favors gold within bitcoin.
Binger opined: “Between 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.” While agreeing with the Oppenheimer analyst who bitcoin is a momentum play, Binger still considers it isn’t a “valid currency yet.”
What do you consider this Oppenheimer analyst’s opinion? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This guide is for informational purposes only. It’s not an immediate offer or solicitation of an offer to purchase or sell, or even a recommendation or endorsement of any goods, services, or businesses. Fintech Zoom doesn’t provide tax, investment, legal, or accounting information. Neither the organization nor the writer is accountable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services discussed in this report.