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Global financial markets are witnessing one of the rare periods in which digital and traditional safe havens are rallying simultaneously.
The largest cryptocurrency, Bitcoin (BTC), broke through the psychological $90,000 barrier during the day, indicating that it has entered a new period of price discovery.
Three prominent figures, Dave Weisberger, James Lavish, and Mike McGlone, came together to assess this market volatility, discussing the current situation and year-end expectations.
CoinRoutes CEO Dave Weisberger focused on the technical and institutional side of the coin. Unlike previous cycles, he noted that this rally also saw Bitcoin accumulating in institutional hands and that capital coming through ETFs was “loyal.” Weisberger maintained his optimism, arguing that the $90,000 level is no longer a ceiling, but an “entry point” for institutional investors.
Macro strategist James Lavish attributed the simultaneous rise in precious metals and Bitcoin to the global debt crisis. Stating that concerns about fiat currency devaluation have driven investors towards assets with limited supply, Lavish said, “The record highs in gold and silver are a result of a general lack of confidence in the system and an effort to protect against inflationary pressures.”
Bloomberg Senior Commodities Strategist Mike McGlone stood out as the most cautious member of the panel. While McGlone acknowledged that Bitcoin is on its way to becoming “digital gold,” he argued that the current price movement largely mirrors the stock market (S&P 500) rally.
According to McGlone, if the stock market experiences a correction, Bitcoin, being a “risk-on” asset, could be the hardest hit. Arguing that the full impact of the Fed’s tight monetary policy and liquidity tightening has not yet been felt, McGlone stated that gold is a safer haven than Bitcoin because it is backed by central banks. He also cautioned that excessive optimism in the market can often be a harbinger of a pullback.
While markets debate whether Bitcoin will reach its $100,000 target before the end of the year, analysts argue that the possibility of a “Christmas Rally” is quite high.
*This is not investment advice.