Regardless of whether incumbent Donald Trump or challenger Joe Biden prevails in the upcoming US presidential election, experts see gold and Bitcoin (BTC) as the real winners at the end of the year.
Frank Holmes, CEO of US Global Investors, said in an interview with Kitco on October 7th that gold will experience a new upswing in the next few months.
“We are in the season of love. In India it’s wedding season, after that Christmas comes and the Chinese New Year will be the climax, ”he explains. And further:
“This time of year, a particularly large amount of gold is consumed, and it also correlates most strongly with economic growth (GDP per capita).”
“Some bet on Trump, some bet on Biden, I bet on gold,” the investment expert summarized.
Holmes is looking at a price target of $ 4,000 for the precious metal.
Peter Schiff takes a similar line, predicting another period of weakness for the US dollar. This in turn would be beneficial for gold.
Bitcoin and gold were both high in August before both stores of value went down again. This decline was accompanied by an upturn in the US Dollar Index (DXY), further evidence that there is an inverse correlation between gold and Bitcoin on the one hand and the US dollar on the other. The presidential election could have a massive impact on the US dollar, but Holmes is certain that the precious metal will not be affected.
Bitcoin and gold in comparison. Source: Skew
Brandt is confident
Bitcoin recently took a comparable development to gold, because after the DXY had found new strength, the crypto currency also went sideways again. The US $ 11,000 mark therefore seems a long way off in October.
The news that after MicroStrategy, the payment service provider Square is now the next big company to invest heavily in Bitcoin, caused an upswing in the crypto markets on Thursday. Nonetheless, the resistance at $ 10,940, which had already emerged as a major hurdle last month, could not be overcome now.
However, the experts see this development as a sign of future strength.
“It’s a big deal that a global corporation now has #Bitcoin on its books,” says the veteran trader Peter Brandt accordingly determines. He then adds:
“Weekly chart and daily chart are in a good position to offer another buying opportunity soon.”
Bitcoin price analysis by Peter Brandt. Source: Twitter
Cointelegraph Markets analyst Michaël van de Poppe warns that Bitcoin must cross the $ 11,000 mark in order to really get back on an upward trend.