Categories: CryptocurrencyFinance

Major bank analyst recommends investing in Bitcoin now

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Ari Wald, the head of technical analysis at investment bank Oppenheimer, says now is the time to invest in Bitcoin.

Speaking to CNBC, Wald touted both gold and Bitcoin as solid investments due to their current upward momentum.

Bitcoin and gold surging

Gold has recently hit an all-time high, currently trading at US$1,969 [AUS$2,727] per ounce. Meanwhile, BTC hit an 11-month high when it broke past the US$11,000 [AUS$15,230] barrier earlier this week. The world’s foremost cryptocurrency is trading at US$10,990 [AUS$15,221], at the time of writing.

Investors have been flocking to gold and BTC due to the issues currently affecting the world. The ongoing COVID-19 pandemic, China cracking down on democracy in Hong Kong, the U.S. and China squaring off against each other, and other concerns are all causing people to look for safe havens to park their money.

Speaking about gold and Bitcoin, Ari Wald said, “We’ve been recommending gold as a way to play the expansion of the [Federal Reserve’s] balance sheet. It’s actually the high momentum commodity, it ranks highest above all commodities out there in terms of momentum.”

He added, “We do recommend sticking with it but I think it’s worthwhile to highlight Bitcoin instead which isn’t 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 you’d like to see.”

Not everyone on board

The president of Gradient Investments, Michael Binger, noted on the CNBC segment that he still prefers gold to BTC.

He said, “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.”

However, Binger did agree with Wald that BTC is enjoying upward momentum. His caution over the cryptocurrency is that it is not a “valid currency yet.”

Another notable person that recently discussed gold and BTC is Michael Novogratz, the ex-hedge fund manager turned crypto advocate. He told CNBC that a lot of money was just poured into both commodities, adding that interest in Bitcoin is growing on the part of institutional investors.

However, he says there will be a learning curve for such investors when it comes to cryptocurrency. He notes, “Gold has been around for 3,000 years. It’s pretty easy to buy. There’s an adoption game in Bitcoin that you don’t have in gold. But I like them both.”

Images courtesy of Jakub Orisek, Steve Bidmead/Pixabay

Jeff Francis

Jeff has taken a roundabout way to becoming a cryptocurrency writer. He has always had a huge interest in history, which led to him receiving a degree in medieval history. He once thought of becoming a teacher but eventually joined some friends in opening a hobby shop. Jeff eventually took over sole proprietorship of the business and ran it for over 10 years. He then moved on to online selling and then into gaming journalism. He has spent the last 10 years writing professionally for various websites as well as creating content for many businesses. A few years back, he began hearing about Bitcoin and the rise of other cryptocurrencies. A proponent of allowing people to take economic power into their own hands, Jeff has enthusiastically supported cryptocurrencies, not to mention the many benefits of blockchain technology. This interest propelled him to becoming a writer for, and later editor of, several cryptocurrency-focused websites. Jeff is a lifelong geek and gamer. He tries to keep up with the slew of TV shows and movies that fall into the fantasy/sci-fi/superhero genres, and he still plays pen-and-paper role-playing games on the weekends. He lives in Florida, USA, as he cannot stand cold weather.

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