Goldman Sachs Bullish On Bitcoin & Gold As Recession Signals Continue

Recent analyst reports from Goldman Sachs suggests investors should take advantage of the current Bitcoin price dip and buy now.

In a series of slides prepared by one of Goldman’s technical analysis teams and distributed to clients, the bank included one that put the short-term target Bitcoin price at $13,971.  They echo the sentiment shared by many that we are currently in a dip and that now is an ideal time to buy.

Bullish On Bitcoin Goldman Sachs

Source: Goldman Sachs

According to the report, there is also the potential that this could be the first leg of a five-wave count of price rises.  This means that any decrease in Bitcoin price from the $12,916-$13,971 level (where we’re currently at and have been for a few months) would be a smart buying opportunity.

This latest report from Goldman Sachs further adds to the sentiment that investors are once again eyeing the crypto industry.  Last year, Fidelity Investments revealed they would be launching a digital assets division, and earlier this year JP Morgan analysts claimed that Bitcoin has “intrinsic value”.

More recently, billionaire VC investor Tim Draper reaffirmed his belief in a $250k Bitcoin price by Q1 2023 at the latest.  These increasingly bullish feelings from Wall Street and institutional investors around the world will no doubt help drive up the price of Bitcoin in the coming months and years.

Gold was also mentioned favorably in the series of slides from Goldman, particularly in a scatter chart (see below) that “helps to identify where trends in the market are extending or turning on a week by week basis.”  Gold is featured in the “Strong and Stronger” quadrant, which means it has strengthened for both of the past two weeks. The chart also includes a note indicating that it is yet “another week in the top right quadrant for Gold/precious metals”.

Bullish On Bitcoin Goldman Sachs Percentage Increase

Source: Goldman Sachs

This comes in conjunction with a recent note sent to clients by Goldman Sachs saying that the bank expects the US-China trade war won’t be resolved before the 2020 presidential election.  They also said they believed that the economic slowdown will continue and that a recession is likely. Investors have already seen the stock market take a tumble as a result of geopolitical instability, and the U.S. has accused China of manipulating the value of the yuan to damage the profitability of American exports.

These economic conditions have caused analysts to speculate that the recent run-up in cryptocurrency and gold prices has in part been caused by Chinese investors wanting to protect their assets against a devaluing yuan.  This would mean that Bitcoin and gold prices would benefit even further from the continuation of the trade war and a subsequent recession.

BITCOIN DOMINANCE CONTINUES

Bitcoin’s dominance was down slightly this week, to 66% in total.  BTC saw significant growth in activity on futures markets, and many feel that we are currently in a bottom.  Several major analysts see a Falling Wedge pattern on the charts though, indicating that the Bitcoin price has a 70 percent chance of a bullish breakout

China’s digital currency is ready after five years of R&D.  An official from the People’s Bank of China (PBOC) recently stated that the CBDC (Central Bank Digital Currency) prototype exists and that the PBOC’s Digital Money Research Group has already adopted the blockchain architecture for the currency.  China’s CBDC won’t rely purely on the blockchain however, as they want a solution that has sufficient throughput required for retail use.

Mastercard recently added three job openings to their website pertaining to blockchain product management.  According to the job description, they are developing a blockchain wallet solution that will likely be a rival to Facebook’s upcoming wallet Calibra.

GOLD PRICE NOW TARGETING $1,550 LEVEL

After overnight buying took gold to $1,470 an ounce, the precious metal is now targeting the $1,500 level.  According to the MKS PAMP Group, an investment firm, “Early European bids underpinned the metal to a USD $1,470 high, with consolidation above USD $1,500 the key to a further extension of the recent move higher. Gold will now look to target resistance toward USD $1,480-$1,500, while USD $1,520 looms as a pivot for near-term pricing.”

Goldman Sachs also sees gold’s rally as far from over, with analysts saying that ““Gold prices have increased further as a weaker CNY sparked substantial U.S. and global growth fears. With growth worries likely to persist, gold could rise further, driven by an increased ETF allocation from portfolio managers, who continue to under-own gold.”

With no trade deal expected before the 2020 presidential election, investors will see higher gold prices due to increased global growth fears, added Goldman.  Gold’s ETF demand is also on a strong upward trend, with the bank upping its 2019 forecast from 300 to 600 tonnes.

Now is the time to take advantage of the rising price of gold and protect yourself from stock market volatility.  Indicators are showing that these bullish trends will continue in the gold markets, giving you an excellent opportunity for immediate growth and providing protection for your assets against future economic downturns.  Don’t miss out on this opportunity. Act now and reap the benefits of crypto investments.

Reaffirming Bitcoins’ Strength for Long Term Investment 💰

bitcoin

A new study indicates that Bitcoin (BTC) holders make a profit after an average of 1,335 days – which equates to roughly three years and eight months. The data was released earlier by Bitcoin maximalists, and the cycle lengths are shown roughly correlate to the various reward halving events.

The chart (shown above) essentially considers the amount of time between different peaks and how long it would take an investor to profit if they bought at the previous cycle’s peak. Refer to the chart above.

This means that a 100% definite profit would have taken a maximum of 1,335 days, which relates to the bull market run that occurred late in 2013 when the Bitcoin price surged to $1,150. If an investor bought at that price, the peak of that cycle, then it would have meant it took until early 2017 before the Bitcoin price finally broke that level again.

Seeing as this chart is looking at the market extremes, missing the peak of that rally would have resulted in a drastically reduced wait for a profit. Holding Bitcoin for 317 days would have given a 75% chance of profit. You’d have a 60% chance of profit if Bitcoin was held for 35 days, and the likelihood that you were up over any single day was 50%.

If that sounds like a long time, comparable data for the stock market is exponentially longer. To contrast, an investor would have needed to hold their position for 23 years to achieve a sure profit on the S&P 500. This makes it clear that not only is Bitcoin safe, long term storage of wealth, but it is a reliable vehicle for your wealth if you are looking to turn a profit quickly.

It’s also notable that the analysis looked purely at the chance of profit and not the scale of that profit. When Bitcoin is on a bull run, the profits there dwarf those achievable on the stock market indices. A real-world example from this year is the Greyscale Bitcoin Investment Trust, which outperformed everything else so far in 2019 with an appreciation of almost 300% to date.

In addition to Bitcoin, Gold has also been an extremely strong performer this year and is presently a hot topic among traders. Bullish signs continue this week and leading investors have been speaking out on the merits of the precious metal. Mark Mobius, the founding partner of Mobius Capital Partners, appeared on CNBC earlier this week and recommended that investors hold 10% of their portfolios in physical gold.

The latest price targets have the Gold price reaching the $1,600 mark before the end of the year. As global trade policy uncertainty continues, Gold looks a solid bet to keep building on its bullish momentum.

INVESTORS UNNERVED AT MORE WARNING SIGNALS IN STOCK MARKET

Earlier this week, a powerful warning signal revealed itself as the stock market got turned upside down.

Value stocks, or those with low multiples and stable fundamentals, significantly outperformed their growth counterparts. This type of shift is unnerving to investors because “momentum stocks”, or those defined by their large growth expectations relative to the broader market, have outperformed value names in recent years. Rotation away from these stocks could result in a downturn for the broader market.

Over the past 5 years, momentum stocks have blown away their value counterparts. Most of the top-performing S&P 500 stocks this year are growth names. Seven of the 10 best-performing stocks in the benchmark — including Chipotle Mexican Grill, Advanced Micro Devices and MarketAxess Holdings — have a much higher valuation relative to the broader index, FactSet data shows.

Monday’s session was the complete opposite of the year’s trend, however. This, coupled with geopolitical trade uncertainty, casts a dark forecast over the markets for the coming months.

LEADING INVESTOR SAYS ‘GOLD IS THE WAY TO GO’

Mark Mobius, the founding partner of Mobius Capital Partners, appeared on CNBC earlier this week and recommended that investors hold 10% of their portfolios in physical gold.

“Physical gold is the way to go, in my view, because of the incredible increase in money supply,” said Mobius.

“All the central banks are trying to get interest rates down, they are pumping money into the system. Then, you have all of the cryptocurrencies coming in, so nobody really knows how much currency is out there,” he told CNBC’s “Street Signs” on Friday.

Mobius said that investors should place at least 10% of their portfolios in physical gold, with the rest invested in dividend-yielding equities. That’s especially true if the dollar gets weaker.

“People are going to finally realize that you got to have gold because all the currencies will be losing value,” he added.

Gold can retain its value much better than other forms of currency and is traditionally a safe haven during market volatility. A weaker dollar tends to boost the price of gold as global trade in the yellow metal is denominated in U.S. dollars.

“At the end of the day, gold is a means of exchange. It’s a stable currency in some way,” said Mobius.

Now is the time to take advantage of the rising price of gold and protect yourself from stock market volatility. Indicators are showing that these bullish trends will continue in the gold markets, giving you an excellent opportunity for immediate growth and providing protection for your assets against future economic downturns. Don’t miss out on this opportunity. Act now and reap the benefits.